Update on NCLT hearing-Resurgent India Special Situations Fund Vs Future Consumer Limited
Awaiting price reaction for this filing.
Future Consumer Limited provided an update on an ongoing NCLT case filed by Resurgent India Special Situations Fund, a creditor. The case involves alleged default in payment of financial facilities dating back to May 2022. The Company argued that the claim is barred by limitation as the first default occurred beyond the permissible period. The Company also submitted that it does not qualify as an NBFC. The petitioner, Resurgent, relied on the Company's FY 2024-25 financial statements showing NCDs and debt, and stated that the Company had admitted liability in the petition. The matter has been adjourned to 17th April, 2026 for further arguments, where the Company intends to cite additional Supreme Court judgements on limitation.
The case is still pending at NCLT with the Company contesting the claim on technical grounds of limitation. If the NCLT admits the insolvency petition, it could lead to significant restructuring or winding up proceedings, which would be highly negative for existing shareholders.