Future-Reliance deal: NCLT can carry on proceedings but can not pass final order, says SC
The Delhi High Court on 8 February had stayed its single judge direction to FRL and various statutory authorities to maintain status quo on the mega deal
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The Supreme Court Monday asked the National Company Law Tribunal (NCLT) not to pass a final order Future Retail Ltd’s ₹24,713-crore asset sale to Reliance Industries Ltd. The apex court also agreed to hear Amazon s plea against the Delhi High Court verdict staying its single-judge directive to maintain status quo on the deal. The e-commerce giant has moved the top court against the order of the high court division bench which paved the way for the Reliance-Future Retail Ltd deal.
Delhi HC stays single judge’s status quo order on Future-Reliance deal
February 08, 2021
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A Delhi High Court Division Bench today stayed the status quo order passed by a single judge in the case related to the dispute between Amazon and Future Retail.
Chief Justice DN Patel and Justice Jyoti Singh said the
prima facie reason was that Future Retail was not a party to the August 22, 2019 Shareholders Agreement executed between Amazon, Future Coupons Private Limited and the promoters of Future Retail, under which arbitration was initiated by Amazon in Singapore. Also, the US e-commerce giant was not a party to the deal between FRL and Reliance Retail. The deals “are different” and “therefore, the group of companies doctrine cannot be invoked”, it said.