Case Law Details
Amazon.com NV Investment Holdings LLC Vs Future Retail Limited (NCLT Mumbai)
Hon’ble National Company Law Tribunal (NCLT), Mumbai dismissed the intervention petition no. 1/2022 filed by Amazon.com NV Investment Holdings LLC (Applicant / Amazon) u/s 65 of Insolvency and Bankruptcy Code (IBC), 2016 read with Rule 11 of the National company Law Tribunal Rules, 2016, against the application u/s Section 7 of IBC filed by Bank of India (Financial Creditor) for initiation of Corporate Insolvency Resolution Process (CIRP) against Future Retail Limited (FRL / Corporate Debtor) with following major observations;
1. The Applicant is not even a stakeholder in respect of the Corporate Debtor and, a complete third-party to the proceedings before this Tribunal and has no locus standi to question initiation of proceedings under Section 7 of the Insolvency and Bankruptcy Code against the Corporate Debtor.
2. The allegation of collusion of the Lenders with Corporate Debtor and Mukesh Dhirubhai Ambani (MDA) group seems to be baseless, since, at the time of voting by the secured creditors, the Financial Creditor and the other Lenders had opposed the scheme of arrangement of FRL with MDA Group. The same has been admitted by the applicant himself.
3. Framework Agreement (FA) has been signed between FRL and Lenders was within the ambit of the RBI Circular by all the 26 Lenders and the question of FA being in violation of any injunctions does not arise as no sale of any assets has happened and seeking consent of Amazon under Clause 5.1.2 was not breached
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