Kishore Biyani-led Future Retail is in a legal battle with global e-commerce giant Amazon over a Rs 24,713 crore deal to sell its retail and wholesale business to Reliance Industries
Future Retail said in a regulatory filing on Thursday (March 18, 2021) that it had appealed against the 134-page judgment of the Delhi High Court unanimous bench headed by JR Mitha on Thursday (March 18, 2021), restricting itself from going ahead with the deal.
The interim stay orders were not waived before the division bench.
Future Retail made a key statement on Friday, making it clear that the single judge’s verdict would have no effect on the case before the National Company Law Tribunal (NCLT).
In the statement, Future mentioned that NCLT had already reserved its orders on the implementation of the Future Retail Group agreement with Reliance.
Future group referred to the ruling of the Supreme Court dated February 22, 2021, in this regard.
The Kishore Biyani-led firm quoted the Supreme Court in its ruling on February 22, 2021, stating that the NCLT proceedings on the futures deal with Reliance could continue as usual but would not give final orders.
Similarly, some of the key points in the judgment of the Single Judge are now in the Interim Orders dated February 2, 2021 (orders directing Future not to proceed with the Agreement).
Giving a positive ruling on the 8th, Sim Gill recalled the stay given on the verdict given by the judge.
Although Amazon went to the Supreme Court on this, it was crucial that the Supreme Court did not ‘vacate’ the stay orders given by the Divisional Bench on the Interim Orders of the Single Judge (issued on February 2, 2021).
In this context, the Delhi High Court Division Bench said that legal experts were advising them to consider the stay orders as still in force.
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Reason for lawsuit
It is learned that Amazon has bought a stake in Future Coupons (FCPL), part of the Future Group.
As FCPL has stakes in Future Retail, Amazon has also indirectly become a small shareholder in it.
Future retail business has been hit hard by a financial crisis with the aftermath of the coronavirus.
Future Group has agreed to sell to Reliance Industries (RIL) for Rs 24,713 crore.
Approached NCLT for approvals for the deal. However, Amazon has appealed to the International Arbitration Tribunal against the terms of the deal.
The single judge ordered that the status quo be maintained as Amazon knocked on the door of the Delhi High Court.
Challenging these, Future Group has approached the Delhi High Court Divisional Bench. The division bench ruled that the terms of the FCPL agreement with Amazon were different from the terms of the RIL-FRL agreement and stayed the judgment of the single judge while proceeding with the deal.
On these Amazon. resorted to the Supreme.
In the meantime, the Delhi High Court single bench on March 18, 2021, issued key orders constituting the Future Group.
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