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MUMBAI : The Mumbai bench of the National Company Law Tribunal (NCLT) on Monday reserved its orders pertaining to Bank of India’s (BoI) petition for initiating corporate insolvency resolution process (CIRP) against Future Retail Ltd (FRL), under section 7 of the Insolvency and Bankruptcy Code (IBC).

This comes in the wake of BoI filing a petition against FRL under section 7 to initiate corporate insolvency resolution process. Future Retail owes its creditors led by BoI more than Rs15,000 crore.

A bench of Justice Shyam Babu Gautam and Justice Pradeep Narhari Deshmukh after hearing both the parties at length said “We reserve the matter for orders."

A Section 7 petition should be admitted by the tribunal within 14 days, according to regulations governing the IBC. However, it has been more than two months that the petition has not been admitted. BoI had on 14 April submitted an insolvency petition against Future Group for non-payment of dues due under the terms of the agreement entered into between Future Group and the bank. BoI’s petition is being opposed by Amazon alleging that 26 banks including BoI colluded with Future Group to deny Amazon of its rights.

Amazon has filed an intervention application under section 65 of the IBC, which deals with the provisions relating to the penalty for fraudulent or malicious initiation of proceedings. The adjudicating authority can impose the penalty upon the applicant if it initiates CIRP fraudulently or with malicious intent for any purpose other than for the resolution of insolvency.

The US giant’s application also seeks NCLT’s directions to investigate fraudulent and malicious initiation of proceedings against the lender while also asking the court to dismiss the banks petition.

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