NCLT Mumbai Approves Reliance Retail’s ₹171.38 Crore Resolution Plan for Future Supply Chain Solutions Ltd
Pranav B Prem
The National Company Law Tribunal (NCLT), Mumbai Bench, has approved the resolution plan submitted by Reliance Retail Ventures Limited (RRVL) for Future Supply Chain Solutions Limited, a Kishore Biyani-led Future Group company, under Section 31(1) of the Insolvency and Bankruptcy Code, 2016 (IBC). The Bench comprising Judicial Member Lakshmi Gurung and Technical Member Hariharan Neelakanta Iyer observed that the resolution plan fully complies with the requirements of Section 30(2) of the Code and meets all necessary legal conditions for approval. The Tribunal reiterated that the commercial wisdom of the Committee of Creditors (CoC) is paramount and binding on all stakeholders once the plan is approved with the requisite majority.
Background
The Corporate Insolvency Resolution Process (CIRP) against Future Supply Chain Solutions Limited (FSC) commenced on January 5, 2023, following an application filed by DHL Ecommerce (India) Private Limited under Section 9 of the IBC. Mr. Rajan Rawat was appointed as the Interim Resolution Professional (IRP) and later confirmed as the Resolution Professional (RP).
During the process, the CIRP period underwent multiple extensions, with the latest granted on September 30, 2024. The present application seeking approval of the resolution plan was filed before the Tribunal on August 14, 2024. The Committee of Creditors was constituted on February 10, 2023, admitting total claims of ₹155.16 crore. The CoC subsequently evaluated the resolution plans received and, after reconstitution, approved the final plan submitted by Reliance Retail Ventures Ltd. with a 91.76% voting share.
Financial Details of the Plan
The average fair value of the corporate debtor was determined at ₹170.69 crore, while the liquidation value was ₹133.35 crore. The Tribunal recorded that the approved resolution plan was valued at ₹171.38 crore, which was above the liquidation benchmark and thus aligned with the CoC’s commercial decision. The order clarified that payments towards CIRP costs, upfront payments to assenting and dissenting financial creditors, and dues to operational creditors are to be made on the Effective Date as specified in the plan.
Tribunal’s Observations
After examining the plan and accompanying affidavits and clarifications submitted by the Resolution Professional (RP) and the Successful Resolution Applicant (SRA), the Bench found no legal impediment to approval. The Tribunal held that the resolution plan:
Complies with Section 30(2) of the IBC and related regulations;
Has been duly approved by the CoC with the requisite majority;
Provides for effective implementation and supervision mechanisms.
The Bench directed that the Resolution Professional shall hand over all assets, records, and premises of the corporate debtor to the Successful Resolution Applicant upon the order taking effect. It also constituted a Monitoring Committee, comprising the RP and representatives of the CoC and the SRA, to oversee the plan’s implementation. The moratorium imposed under Section 14 of the Code stood lifted from the date of the order.
The Tribunal clarified that no automatic reliefs or concessions would be deemed granted merely because they were sought in the plan. Any exemptions from registration charges, stamp duty, or taxes must be specifically obtained from the competent authorities as per applicable laws. “The reliefs and concessions sought in the plan shall not be construed as automatically approved. The Successful Resolution Applicant may approach the relevant statutory authorities for necessary permissions and approvals,” the Bench stated.
Allowing the application, the NCLT Mumbai approved Reliance Retail Ventures Ltd.’s ₹171.38 crore resolution plan for Future Supply Chain Solutions Ltd., bringing closure to the CIRP initiated in January 2023. The order directed that the implementation proceed in accordance with the timelines specified in the plan under the supervision of the Monitoring Committee.
Appearance
For the Applicant/RP: Adv. Nausher Kohli with Adv. Dhananjay Sud, Adv. Jyoti Dubey and the RP, Mr. Rajan Rawat
For the SRA: Adv. Madhav Kanoria, Adv. Surbhi Pareek and Adv. Jayesh Karnawat, Adv. Karthika Sanjay for SRA
Cause Title: DHL Ecommerce (India) Private Limited v Future Supply Chain Solutions Limited
Case No: C.P. NO. 96(IB)/MB/2022
Coram: Judicial Member Lakshmi Gurung, Technical Member Hariharan Neelakanta Iyer
