Home / Companies / News /  Future auditors to reply to RP’s plea

The National Company Law Tribunal (NCLT) on Monday asked statutory auditors of Future Retail Ltd to respond after the bankrupt company’s resolution professional (RP) accused them of non-cooperation.

The counsel for RP had filed an application under Section 19(2) of the Insolvency and Bankruptcy Code which allows the RP to file an application before the adjudicating authority for necessary directions if a promoter or any other person required to assist or co-operate with the interim resolution professional does not do so.

Essentially, the RP has sought the court’s intervention in seeking relevant documents from Future Group’s erstwhile promoters and auditors.

A bench of justices Shyam Babu Gautam and P.N. Deshmukh asked the auditor to file a reply in two weeks and posted the matter for further hearing on 21 February.

Counsel for the auditors of Future group, while seeking time to file a reply, said, “Under the petition for non-cooperation that has been filed, a lot of documents that have been asked for, I (auditor) am not even required to keep. I am the ex-auditor for the corporate debtor."

He added that the documents that are being sought include sample agreements with vendors and landlords. “How as an auditor should I have all of these documents? I will address this and file a detailed reply and clarify my position on the documents that I have as an auditor," the counsel said.

The bench told the auditor that the position of the RP needs to be understood. “Since you were running the company, you will have a better idea about it".

The bench has also asked the RP to state on record the inventory held by the insolvent firm. Previously, the RP had informed the bench that the promoters were not co-operating with him and not providing necessary information with respect to the assets of the company.

Priyanka Gawande
Priyanka Gawande is a senior legal correspondent at Mint. She has worked as legal reporter for four years with both television and digital mediums. Based in Mumbai, she reports on disputes across sectors including banking, corporates and finance. This also includes insolvency and bankruptcy cases and intellectual property rights (IPR) litigation. Her focus also comprises tracking capital markets and disputes relating to securities law. Previously, Priyanka worked with Informist Media for 2.5 years covering major insolvency and bankruptcy cases and corporate developments. She started her career in journalism with Business Television India (BTVi) where she reported on primary markets, banking, finance and insurance companies.
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