NCLT Mumbai Admits Kishore Biyani-Led Future Consumer Into CIRP Over ₹263.77 Crore Default

The Mumbai Bench of the National Company Law Tribunal on Wednesday admitted Kishore Biyani-led Future Consumer Ltd into the Corporate Insolvency Resolution Process (CIRP) on a petition filed by Resurgent India Special Situations Fund.

The tribunal found that the company had defaulted on a financial debt, with acknowledged outstanding dues of ₹263.77 crore.

A bench of Judicial Member Nilesh Sharma and Technical Member Sameer Kakar held that the requirements for initiating CIRP had been satisfied and the application deserved admission.

The tribunal observed, "Thus, it is clear from perusal of the record that an amount of more than the threshold limit of Rs.1 Crore under Section 4 of the Code, was due and payable by the CD to the Applicant. Hence, we find that the Applicant has been able to substantiate the existence of a financial debt due and payable by the CD, which remained unpaid. The debt so owed by the CD to the Applicant falls within the definition of “financial debt” under Section 5(8) of the Code."

The proceedings arose from non-convertible debentures worth ₹200 crore issued by Future Consumer in 2018. Despite receiving several waivers, extensions, and restructuring accommodations, the company failed to honour its repayment obligations. The Debenture Trustee consequently issued acceleration notices in March and April 2024, declaring the outstanding dues immediately payable.

Resurgent India Special Situations Fund acquired the debentures in March 2025 along with the associated rights and security interests. It issued a demand notice in July 2025 seeking immediate payment. Future Consumer later acknowledged outstanding dues of ₹263.77 crore. The fund subsequently filed the insolvency petition.

Future Consumer attributed its financial distress to the Covid-19 pandemic, the collapse of its proposed restructuring with Reliance Retail Ventures Ltd following litigation involving Amazon and its business setbacks. The tribunal held that those circumstances could not defeat a financial creditor's statutory remedy.

"It is to be noted that financial difficulties, market conditions, business reverses, commercial failures, regulatory impediments or failed restructuring efforts do not extinguish the debt nor can they defeat the statutory remedy available to a Financial Creditor under Section 7. Accordingly, this contention of the CD is rejected.", the tribunal noted.

The company also relied on pending arbitration proceedings against Aussee Oats Milling Private Limited and SVA India Limited. It argued that any recovery from those proceedings would enable it to clear its liabilities. The tribunal rejected the contention.

"Further, the CD relied upon pending arbitration proceedings against Aussee Oats Milling Private Limited and SVA India Limited and submits that it expects substantial recoveries in future which may enable it to discharge its liabilities. A mere possibility of future recovery cannot negate an existing and admitted default.", the court observed.

Future Consumer also argued that the insolvency application was barred by limitation because the first default had occurred in May 2022. The tribunal rejected the objection. It held that the company's audited balance sheets and other written acknowledgements of debt extended the limitation period, making the application well within time.

The tribunal further rejected the company's submission that CIRP would serve no useful purpose because it remained a going concern. It observed that the commencement of CIRP does not result in closure of the business. The company would continue as a going concern under the management of the Resolution Professional.

Accordingly, the tribunal admitted Future Consumer into CIRP, declared a moratorium, and appointed Aegis Resolution Services Private Limited as the Interim Resolution Professional. It clarified that the exact amount of the default would be determined by the IRP during the insolvency process.

For Financial Creditor: Advocate Akshay Petkar along with Trisha George Instructed by Avyaan Legal

For Corporate Debtor: Advocate Shyam Kapadia with Advocates Petrushka Dasgupta, Krishna Baruah, Ankita Yadav, Devdatta Uchhil instructed by Link Legal.