National Company Law Tribunal closes insolvency proceedings against V2 Retail

By

Isabelle Crossley

Published
Jul 17, 2020

The National Company Law Tribunal ruled to close the insolvency proceedings against value fashion retailer V2 Retail, after its operational creditor settled the payment-related dispute with the business.

 
V2 Retail’s Interim Resolution Professional filed an application to the NCLT to close the ongoing insolvency proceedings against the business, the Press Trust of India reported. The NCLT ruled in favour of the request after examining the IRP’s application and settlement agreement with V2 Retail’s creditor.
 
“Under such circumstances, we think it is proper to approve the settlement,” said the NCLT in its order dated July 10, the Press Trust of India reported.

“Accordingly, we hereby allow the prayer of the IRP and the company petition... stands dismissed as withdrawn and the order dated June 25, 2020, by the CIRP was ordered to be initiated in the present matter is hereby set aside.”
 
Totem Media Solutions made a plea against V2 Retail in June at the NCLT which led to the initiation of the insolvency proceedings. The tribunal also appointed an interim resolution professional at that time.

V2 Retail, promoted by Ram Chander Agarwal, launched in 2001 and retails womenswear, menswear, and children’s wear through its stores in 13 Indian states. The business reported a revenue total of Rs 701.22 crore ($105.4 million) for the 2020 financial year.