Home National News Relief for Future Retail Pvt Ltd as Delhi HC delivers ruling in...

Relief for Future Retail Pvt Ltd as Delhi HC delivers ruling in RIL case

Delhi High Court, in its division bench ruling on Monday, accorded a huge relief for Future Retail Ltd group in the RIL deal case. The high court’s order came over an urgent petition moved by FRL after the single-member bench directed maintaining status-quo over Future’s deal with Reliance. It ruled that statutory authorities can’t be restrained from abiding strictly by the law.

New Delhi, February 9, 2021: Delhi High Court, in its division bench ruling on Monday, granted a huge relief for Future Retail Ltd group on the RIL deal case. As per the ruling, statutory authorities cannot be restrained from acting in complete accordance with the law and the court also ordered a stay on a previous order on the status of Future Retail’s INR 24,713 crores deal with Reliance. 

FRL said the order was pronounced in open court on Monday and a copy of the same is awaited.

When updating stock exchanges about the court ruling, FRL said a division bench comprising Chief Justice D N Patel and Justice Jyoti Singh has stayed the operation and effect of the order passed by single judge J R Misha on February 2. 

“ …inter alia, for the prima facie reason that the company is not a party to the shareholders agreement dated August 22, 2019, executed between Amazon, Future Coupons Private Limited and the promoters of FRL, under which arbitration was initiated by Amazon in Singapore. Court also observed that the statutory authorities cannot be restrained in private litigation from acting in accordance with the law,” read a statement released by FRL.

Relief-for-Future-Retail-Utkal-Today
Image: PTI

Relief for Future Retail after petition

The Delhi High Court’s order came over an urgent petition moved by FRL after the single-member bench directed maintaining status-quo over Future’s deal with Reliance.

The scheme of arrangement has already received approval from CCI and no objection was there from SEBI. 

Following this, it approached NCLT Mumbai on January 26.

Amazon has not responded to emailed queries that were seeking its views on the court order and the future courses of action.

Last month, that is in January, Amazon had approached the Delhi High Court seeking enforcement of the interim order of the Emergency Arbitrator (EA) at the Singapore International Arbitration Centre (SIAC) that had restrained FRL from going ahead with the deal with reliance. 

Image: Getty Image

The tussle

Amazon and Future have been locked in a bitter legal tussle after the US e-commerce giant dragged future group to arbitration at SIAC, arguing that the latter (Future Retail) had violated their contract by entering into the deal with their rival, Reliance.

Amazon had invested in future coupons in the year 2019, in August with an option of buying into the flagship future retail after a period of three to ten years. 

In the month of August, last year, Future Retail group had entered into a deal with billionaire Mukesh Ambani’s RIL to sell its retail, wholesale, logistics, and warehousing units in a deal of Rs 24,713 crore.

Image: The Quint

After interim order in favour of Amazon, relief for Future Retail

In the month of October 25, 2020, an interim award was passed in favour of Amazon with a single judge bench of V.K. Rajah, barring Future Retail from taking any step to dispose of or encumber its assets or issuing any securities to secure any funding from a restricted party.

Also, quite interestingly, the market regulator SEBI had barred certain other promoters of future retail ltd including Kishore Biyani, last week from the securities market for one year for indulging in insider trading in the shares of the company. However, FRL had also stated that the ban of one year will have “no impact” on the deal with the reliance industries. Including Kishore Biyani and some other promoters and Future Corporate Resources Pvt Ltd (FCRPL) have appealed against this order passed by the market regulator SEBI.

Justice Midha had directed FRL and other parties to maintain the status quo till the pronouncement of the reserved order.

Also Read: Future Reliance Retail deal gets Sebi approval

Written by: Namasya Nandini Swain

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Solve : *
16 − 4 =


Most Popular

Sanjita Mohapatra of Odisha secures the 10th rank in UPSC

Sanjita Mohapatra of Odisha made the state proud by winning laurels by securing the 10th rank in the prestigious Union Public Service...

Ratha Jatra- The Festival that the entire universe celebrates

 ‘Jagannathah svami nayana-patha-gami bhavatu me’ (May it be so that Lord Jagannath be the object of my vision.)

Ganesh Chaturthi: Celebrating the God of wisdom

Ganesh Chaturthi is a time to pray to the Lord who is known to be the remover of all obstacles from our...

Engineer’s Day: Marking the birth anniversary of M. Visvesvaraya

Every other home in India has an engineer, producing the largest percentage of engineers in the world. If engineering was a religion,...

Recent Comments