The National Company Law Tribunal (NCLT) has granted an extension for the insolvency resolution process of financially troubled Future Retail Ltd (FRL) until September 15. This decision follows a request made by the company’s Resolution Professional to the Mumbai bench of the tribunal, asking for a 29-day exclusion from the process, as stated in a regulatory filing.
“NCLT on September 7, 2023, heard the application and granted the said exclusion of 29 days’ from CIRP of FRL. Consequently, the last date for completion of CIRP of FRL is September 15, 2023,” it said.
CIRP refers to Corporate Insolvency Resolution Process.
This is the third extension for FRL.
Last month, the NCLT extended the deadline to August 17, after granting FRL’s request to exclude 33 days from the CIRP. This followed the NCLT’s previous decision in April to provide the company with a 90-day extension, setting the deadline for concluding the process to July 15, 2023.
The Insolvency & Bankruptcy Code (IBC) requires the Corporate Insolvency Resolution Process (CIRP) to be finalized within a total period of 330 days, encompassing any time consumed by legal disputes and litigations.
The insolvency proceedings against FRL was started by the tribunal on July 20, 2022.
As per Section 12(1) of the Code, a CIRP shall be completed within a period of 180 days from the date of initiation.
However, NCLT may grant a one-time extension of 90 days. The maximum time within which CIRP must be completed, including any extension or litigation period, is 330 days.
