Future Consumer Limited Update on NCLT Hearing Against Resurgent India Special Situations Fund
Future Consumer Limited provided an update on the ongoing hearing before the NCLT (Mumbai) concerning the petition filed by Resurgent India Special Situations Fund. The proceedings addressed matters of default, liability, and the statute of limitations regarding financial facilities.During the hearing, counsel for the company submitted that, following previous orders, the company had placed an Affidavit on record confirming that it does not fall under the classification of a Non-Banking Financial Company (NBFC).
The petitioner’s counsel presented the financing documents to the Tribunal, detailing the payment defaults that occurred since 2022. They outlined that after waivers were provided, fresh demands were made. The petitioner asserted that the Notice of Acceleration was issued on March 7, 2024, and subsequently on April 24, 2024, treating these dates as the official default dates. The petitioner also stated that the company admitted the liability presented in the Petition.
Countering these claims, counsel for Future Consumer Limited argued that the initial default related to the transaction occurred in May 2022, a period which was beyond the limitation period. The company's legal defense emphasized that Resurgent had waived defaults, contingent upon the company paying outstanding amounts under the waiver notice. Consequently, if the waiver was breached, the event of default would remain May 2022, rendering the claim barred by limitation.
While the petitioner relied on the company’s Financial Statement for the fiscal year 2024-25, reflecting the Non-Convertible Debentures (NCDs) and associated debt, the company's counsel strongly contested the limitation issue. They relied on the Supreme Court judgment of Pathapati Subba Reddy, arguing that proceedings could be dismissed even if the limitation period was not explicitly pleaded.
The matter was adjourned for further hearing to April 17, 2026, with the company committing to provide further updates on the status of the legal matter.
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