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Published
Jun 20, 2022
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Bombay Rayon Fashions (BRFL) faces insolvency proceedings at NCLAT

Published
Jun 20, 2022

Bombay Rayon Fashions Limited is facing insolvency proceedings with the National Company Law Appellate Tribunal but received temporary relief as the NCLAT has stayed the formation of the Committee of Creditors. 

BRFL Textiles Private Limited's plant at Tarapur - BRFL Textiles Private Limited- Facebook


The textiles business will still face a continued Corporate Insolvency Resolution Process, however, and the resolution professional for the case will have to keep monitoring the business as a concern under the Insolvency and Bankruptcy Code, ET Bureau reported. The NCLAT had previously appointed AAA Insolvency Professionals’ Santanu T Ray as resolution professional for Bombay Rayon Fashions’ insolvency case. A member of Bombay Rayon Fashions’ suspended board, Prashant Agrawal, did appeal this ruling at the appellate tribunal. 

Bombay Rayon Fashions faced NCLAT proceedings when one of its operational creditors filed a petition against the business for allegedly failing to properly repay debts. The recent hearing on June 15 saw the NCLAT division bench of Justice M Venugopal and Kanthi Narahari adjourn the case until July 7. 

Executives of Bombay Rayon Fashions have been forbidden to transfer or dispose in any way of the company’s assets by an NCLAT ruling on June 7. The business had reported a net los if around Rs 300 crore in the 2021 financial year, according to a stock exchange filing accessed by the Economic Times. 

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