# In the matter of Future Lifestyle Fashions Limited

> NCLT judgment dated 2024-08-28. Citation: TCN-2024-NCLT-00739. Mohan Clothing Company Private Limited (Applicant) filed an interlocutory application seeking a…

- **Court:** NCLT
- **Order date:** 28 Aug 2024
- **Citation:** TCN-2024-NCLT-00739
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/future-lifestyle-fashions-limited-20cc1fb8

## Summary

### Background

Mohan Clothing Company Private Limited (Applicant) filed an interlocutory application seeking a mandatory injunction against Future Lifestyle Fashions Limited (Corporate Debtor) to return 11,696 unsold products. The Applicant had been supplying readymade garments to the Corporate Debtor for about 20 years under a 'Sale or Return' agreement. Payments became irregular, and the Corporate Debtor failed to return the unsold products. The Applicant initially approached the Bombay High Court but, due to the admission of a Company Petition filed by Bank of India against the Corporate Debtor, the Applicant approached the NCLT.

## Facts

Mohan Clothing Company Private Limited (the Applicant) supplied readymade garments to Future Lifestyle Fashions Limited (the Corporate Debtor) under a 'Sale or Return' agreement for approximately 20 years. The Corporate Debtor operated retail stores under the labels 'Central' and 'Brand Factory'. Over time, payments from the Corporate Debtor became irregular, and the Corporate Debtor defaulted on its payment obligations. The Corporate Debtor failed to return 11,696 unsold products to the Applicant. The Corporate Debtor committed to providing a payment plan and inventory pick-up dates but failed to do so. The Applicant issued claim notices and demand notices to the Corporate Debtor. The Applicant filed a Commercial Suit in the Bombay High Court seeking a mandatory

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## Issues and analysis

### Issue 1: Whether the application under Section 60(5) of the Insolvency and Bankruptcy Code, 2016 is …

**Ratio:** Section 60(5) of the IBC provides the NCLT with jurisdiction to entertain any application

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**Reasoning:** The NCLT has the authority to address issues arising during the CIRP. The application

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**Interpretation:** Section 60(5) is interpreted broadly to encompass matters related to the CIRP,

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**Application:** The NCLT's jurisdiction under Section 60(5) extends to the Applicant's claim

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## Parties

- **Judges:** Kuldip Kumar…; ANIL RAJ C…
- **Appellants:** Mohan Clothing…
- **Respondents:** Future Lifestyle…; Bank of…
- **Advocates:** Aman A…; Aradhnan…; +2 more

## Timeline

- **N/A — Supply Agr…**: Mohan Clothing Company Private Limited supplied readymade garments to Future Lifestyle…
- **2022-08-16 — Corporate Debto…**: The Corporate Debtor committed to sending a…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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