India’s quasi-judicial body the National Company Law Tribunal (NCLT) has sanctioned the liquidation of Future Retail, a company led by Kishore Biyani. 

The move follows the expiration of the corporate insolvency resolution process (CIRP) without any resolution plan being accepted by the creditors.  

The NCLT Mumbai bench concluded that the insolvent retailer should be liquidated and appointed Sanjay Gupta as liquidator. 

The decision comes after resolution professional Vijaykumar V Iyer was unable to secure applicants to salvage the company.

In November 2023, after the Committee of Creditors (CoC), led by the Bank of India, opted for liquidation, Iyer sought the tribunal's approval for the liquidation of Future Retail. 

The CoC had initially filed an insolvency application against Future Retail in April 2022, due to its failure to repay its debts.  

The NCLT admitted the company for insolvency proceedings in July 2022, owing Rs.170bn ($2.3bn) to its financial and operational creditors. 

Despite initial interest from potential bidders, no final resolution plans were submitted.  

Space Mantra, not originally listed as a bidder, emerged as the sole applicant with a bid of Rs.5.5bn, as reported by Business Standard.  

But the lenders rejected this bid, prompting the resolution professional to approach the tribunal for the company's liquidation. 

The tribunal, comprising Anil Raj Chellan and Kuldip Kumar Kareer, stated: "Looking at the application and averments made therein, it is evident that the maximum period of the CIRP has expired and no Resolution Plan has been approved by the CoC. We are of the considered opinion that this is a fit case for liquidation. Therefore, we hereby order the liquidation of the corporate debtor."