Future Retail Limited (FRL) entered into a framework agreement with Bank of India for availing credit facility from a consortium of lenders including Axis Bank and Andhra Bank.
Subsequently, FRL failed to honour the agreement, resulting in Bank of India filing a CIRP application under Section 7 of the Insolvency Bankruptcy Code, 2016 (IBC).
While the matter was pending, Amazon filed an intervention application (IA) under Section 65 of the IBC (fraudulent or malicious intent of proceedings) challenging the insolvency proceedings on the ground that FRL was barred from disposing of or creating encumbrance on its assets or issuing any securities to secure any funding from a restricted party, as per the terms of Singapore Emergency Arbitrator’s award passed in 2020.
The IA thereby challenged the framework agreement entered into between Bank of India and FRL.
Source: Barandbench
