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Informist, Monday, Jun. 16, 2025

 

NEW DELHI - The Mumbai bench of the National Company Law Tribunal on Monday allowed Uniworth Finlease Ltd. to resubmit its resolution plan for a particular cluster of debt-ridden Future Enterprises Ltd., despite the former company backing out with its resolution plan in between the corporate insolvency resolution process.  

 

"Since RFRP (Request for Resolution Plan) clauses do not permit any PRA (Prospective Resolution Applicants) to withdraw from the CIRP (Corporate Insolvency Resolution Process), any PRA may be permitted by the CoC (Committee of Creditors)/RP (Resolution Professional) to submit revised plan," said the tribunal. The decision by the Committee of Creditors of Future Enterprises to permit Uniworth Finlease and also Orissa Metaliks Pvt. Ltd. to submit revised and compliant resolution plan for value maximisation of the assets of Future Enterprises was not a material irregularity in conducting insolvency process, it said.

 

However, the tribunal put certain conditions, such as giving reasonable opportunity to Orissa Metaliks to submit the revised resolution plan. Both Uniworth Finlease and Orissa Metaliks should be given recourse to challenge mechanism as per the Regulation 39(1A)(b) of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. As Uniworth Finlease had earlier submitted a non-compliant resolution plan, the Committee of Creditors is supposed to consider, examine and evaluate its revised resolution plan carefully to find out whether it was a compliant one and it could be implementable, said the tribunal.

 

In 2023, the tribunal admitted a petition to start insolvency proceedings against Future Enterprises. The resolution process of the debt-ridden company, in consultation with the Committee of Creditors, had initiated a process for cluster-wise resolution of Future Enterprises. In this, the assets of Future Enterprises were divided into three clusters. Thereafter, some resolution plans, including one by Orissa Metaliks, Uniworth Finlease, were received for Future Enterprises' third cluster.

 

In 2024, the Committee of Creditors asked the prospective resolution applicants to submit a revised resolution plan. Thereafter, Orissa Metaliks submitted a revised plan by increasing its financial outlay from INR 300 million to INR 600 million. However, no revised plan was received from Uniworth Finlease and it had verbally informed that it shall not submit a revised plan. Later, it changed its statement and sought to submit a revised resolution plan, which was allowed by the Committee of Creditors as well as the tribunal.  

 

On Monday, the shares of Future Enterprises Ltd. ended 1.7% higher at INR 0.60 on the National Stock Exchange.  End

 

Reported by Surya Tripathi

Edited by Vandana Hingorani 

 

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