# In the matter of Future Retail Limited

> NCLT judgment dated 2024-08-07. Citation: TCN-2024-NCLT-00861. The Applicant filed an application under Section 60(5) of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 7 Aug 2024
- **Citation:** TCN-2024-NCLT-00861
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/future-retail-limited-f2944f14

## Summary

### Background

The Applicant filed an application under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking a direction for the Respondent to contribute INR 14.70 Crores to meet the critical costs of the Corporate Debtor up to March 31, 2024. This amount was intended to be construed as interim finance in the Corporate Insolvency Resolution Process (CIRP) of the Corporate Debtor.

## Facts

Mr. Vijaykumar V. Iyer, the Resolution Professional for Future Retail Limited, filed an interlocutory application (I.A. No. 1152 of 2024) under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking a direction from the National Company Law Tribunal (NCLT), Mumbai Bench. The application requested the Committee of Creditors (CoC) of Future Retail Limited to contribute INR 14.70 Crores to meet the critical costs of the Corporate Debtor (Future Retail Limited) until March 31, 2024, to be considered interim finance. However, the NCLT had already ordered the Corporate Debtor into liquidation on 29.07.2024, effectively ending the CIRP. The NCLT appointed a liquidator, Mr. Sanjay Gupta, to manage the liquidation process. The NCLT found that the application had

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## Issues and analysis

### Issue 1: Whether the Committee of Creditors should be directed to contribute towards the critical costs of …

**Ratio:** Insolvency resolution process costs and liquidation costs shall be paid in full out of

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**Reasoning:** The Tribunal reasoned that since the Corporate Debtor is under liquidation, the

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**Interpretation:** Section 53(1)(a) of the Insolvency and Bankruptcy Code, 2016, prioritizes the

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**Application:** Given that Future Retail Limited was already under liquidation, the Tribunal

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## Parties

- **Judges:** Shri. Kuldip…; Shri. Anil Raj…
- **Appellants:** Vijaykumar…
- **Respondents:** Future Retail…; Committee of…

## Timeline

- **2024-03-31 — Period for Critical…**: Period up to which the applicant sought contribution for critical costs of the Corporate…
- **2024-07-29 — Liquidation…**: Tribunal passed an order for…

## 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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