NCLT Approves Reliance Retail's Resolution Plan For Kishore Biyani-Led Future Supply Chain

The National Company Law Tribunal (NCLT) at Mumbai Bench, has recently approved the resolution plan submitted by Reliance Retail Ventures Limited (RRVL) for Future Supply Chain Solutions Limited, a Kishore Biyani-led Future Group company, under Section 31(1) of the Insolvency and Bankruptcy Code, 2016.The coram comprised Judicial Member Lakshmi Gurung and Technical Member Hariharan Neelakanta Iyer.The tribunal held that the resolution plan complied with Section 30(2) of the Code. It stated that the commercial wisdom of the Committee of Creditors (CoC) was paramount and binding. The Bench noted that the plan, along with all affidavits and clarifications submitted by the Resolution Professional (RP) and Successful Resolution Applicant (SRA), shall form part of the order.The Corporate Insolvency Resolution Process (CIRP) was initiated on January 5, 2023, on an application filed by DHL Ecommerce (India) Private Limited under Section 9 of the Code. Rajan Rawat was appointed as Interim Resolution Professional and later confirmed as RP. The CIRP was extended multiple times, with the latest extension granted on September 30, 2024. The present application was filed on August 14, 2024. The CoC, constituted on February 10, 2023, admitted total claims of Rs. 155.16 crore. The final resolution plan, submitted by RRVL, was approved with 91.76% voting share after reconstitution of the CoC. The average Fair Value was Rs. 170.69 crore, and the Liquidation Value was Rs. 133.35 crore.The tribunal approved the resolution plan valued at Rs. 171.38 crore. It directed that the CIRP costs, upfront payments to assenting financial creditors, dissenting unsecured financial creditors, and operational creditors be made on the Effective Date. The moratorium under Section 14 stands lifted from the date of the order. The RP was directed to hand over all records and premises to the SRA. A Monitoring Committee shall oversee implementation.The Tribunal denied automatic approvals for any reliefs or concessions sought by the SRA. It clarified that no exemptions from registration charges, stamp duty, or taxes were granted. The SRA may approach the relevant authorities as per law. Case Title: DHL Ecommerce (India) Private Limited v Future Supply Chain Solutions LimitedCase Number: C.P. NO. 96(IB)/MB/2022Appearances:For the Applicant/RP: Advocate Nausher Kohli with advocates Dhananjay Sud, Jyoti Dubey For the SRA: Advocates Madhav Kanoria, Surbhi Pareek and Jayesh Karnawat, Karthika Sanjay for SRAClick here to read/download order

NCLT Approves Reliance Retail's Resolution Plan For Kishore Biyani-Led Future Supply Chain

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