Update on NCLT hearing-Resurgent India Special Situations Fund Vs Future Consumer Limited
Awaiting price reaction for this filing.
Future Consumer provided an update on the NCLT (Mumbai) case filed by Resurgent India Special Situations Fund. The company argued that the first default occurred in May 2022, which falls outside the limitation period, while Resurgent's counsel pushed for 24 April 2024 as the date of default. The Tribunal raised a new concern, noting that FCL's plants, equipment and machinery are valued at over Rs. 300 crore and that it has significant investments in subsidiaries, questioning whether the company should have been registered as an NBFC with the RBI. The company has been directed to file an additional affidavit in 10 days clarifying this NBFC registration issue. The next hearing is scheduled for 16 April 2026.
The case remains in early hearing stages with no immediate order against the company, but a new NBFC registration question has been raised, which could create additional regulatory and operational complexity for shareholders. Investors should monitor the next hearing closely as it may affect the company's legal standing and debt resolution path.