NCLT Mumbai Orders BSE, CDSL To Unfreeze Future Group Company's Demat Account

The National Company Law Tribunal (NCLT) at Mumbai Bench recently directed the Bombay Stock Exchange (BSE) and Central Depository Services (India) Ltd. (CDSL) to lift the debit freeze on the demat account of Future Corporate Resources Pvt. Ltd. (FCRL), a company led by Kishore Biyani.

The order came after FCRL's Interim Resolution Professional (IRP) sought the removal of the freeze, saying it prevented him from taking control of the company's assets during ongoing insolvency proceedings.

A coram comprising Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar allowed the plea, observing that the restriction had obstructed the resolution process of CIRP bound company.

The court observed,"we have no hesitation to direct Respondent No. 2 (BSE( to vacate the debit freeze with immediate effect and issue necessary communication to Respondent no. 1 (CDSL) in this relation within 15 days from the date of this order”

The freeze on FCRL's demat account was imposed subsequent to a freeze on the account of Future Retail Ltd. (FRL). BSE had instructed CDSL to restrict FCRL's account, citing a SEBI directive issued after FRL defaulted on payment of its annual listing fees. FCRL's account was linked to the same group and consequently brought under the freeze, even though FCRL itself was under insolvency.

The tribunal noted that the restriction was inconsistent with the moratorium under the Insolvency and Bankruptcy Code, which bars any action against the assets of a company under insolvency. It also referred to SEBI's Standard Operating Procedure of February 2021, which allows stock exchanges to lift such restraints when a moratorium is in force.

It subsequently, directed BSE to communicate the lifting of the freeze to CDSL within 15 days. If no such communication is received within the period, CDSL must independently remove the restriction.

Case Title: Avil Menezes Interim Resolution Professional of Future Corporate Resources Private Limited v Central Depository Services (India) Limited And Ors

Case Number: IA No. 2590 of 2025 IN C.P.(IB) NO. 1113 (MB) OF 2022

For the Applicant: Advocate Dhrupad Vaghani along with advocate M.K

For the Respondents: Advocates Suraj Chaudhary, Abhay Chauhan, Ajit Shah Parikshit Pania, Ajit Singh Tawar and Prakhar Tandon.

Click here to read/download order