Future Retail files appeal in Delhi High Court against status quo order on Future-Reliance deal

By: |
February 3, 2021 1:06 PM

On Tuesday, a Delhi High Court bench of Justice J R Midha had directed FRL to maintain status quo in relation to its Rs 24,713-crore deal with Reliance Retail that has been objected to by US-based e-commerce giant, Amazon.

Following the Tuesday directive, FRL had said it would explore legal recourse.

Future Retail Ltd (FRL) on Wednesday said it has filed an appeal in the Delhi High Court against the status quo order on its Rs 24,713-crore deal with Reliance.

On Tuesday, a Delhi High Court bench of Justice J R Midha had directed FRL to maintain status quo in relation to its Rs 24,713-crore deal with Reliance Retail that has been objected to by US-based e-commerce giant, Amazon.

Following the Tuesday directive, FRL had said it would explore legal recourse.

“Further to our letter dated February 2, 2021, please be informed that the company has filed an appeal before Hon’ble High Court of Delhi against the impugned order dated February 2, 2021,” FRL said in a regulatory filing on Wednesday.

Emails sent to Amazon did not elicit a response.

FRL’s scheme of arrangement has already received approval from CCI and no objection from SEBI, following which it had approached NCLT, Mumbai on January 26, 2021. The application is yet to be taken up by the NCLT, FRL had said.

Last month, 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.

Justice J R Midha, on Tuesday, said the court was satisfied that an immediate interim order was required to be passed to protect the rights of Amazon. “Respondents (FRL) and other respondents are directed to maintain status quo as on today at 4:49 PM till pronouncement of the reserved order,” the judge had said.

Amazon has sought to restrain Kishore Biyani-led Future Group from taking any steps to complete the transaction with entities that are a part of the Mukesh Dhirubhai Ambani (MDA) Group.

The High Court, which heard the matter for four consecutive days, reserved its order on the main petition. It has also directed all other concerned authorities to maintain status quo in relation to the matters which are in violation of the emergency award and to file status report with regard to the present status within 10 days.

Amazon had dragged Future Group to arbitration at SIAC, arguing that Future violated their contract by entering into the deal with rival Reliance.

On 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.

After this, the Future Group filed a plea with the Delhi High Court. On December 21, a single-member bench rejected the plea to restrain Amazon from writing to regulatory authorities about the SIAC arbitral order but gave a go-ahead to the regulators to decide over the deal.

The Court had also made several observations indicating that Amazon’s attempt to control FRL through a conflation of agreements Amazon has with an unlisted unit of the Indian company will be violative of the FEMA FDI rules.

Amazon, in its petition, had also sought detention of Future Group founders, including CEO Kishore Biyani, and seizure of their assets as it sought to block the Future-Reliance deal.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Actively pursuing Airbus to begin manufacturing aeroplanes in India, says Piyush Goyal
2Adani Ports promoters release 3.21 crore pledged shares
3Global growth to be hit if IP norms not waived to deal with COVID-19: India at WTO