Future Retail moves HC against order to maintain status quo on deal with Reliance

By: |
February 4, 2021 6:15 AM

A bench comprising Chief Justice DN Patel and Justice Jyoti Singh agreed to hear the appeal on Thursday. It rejected FRL senior counsel Darius Khambata’s request to hear the stay application in the afternoon itself. “FRL will be saved from insolvency..the matter is coming up tomorrow otherwise..”, Khambata told the judges.

However, senior counsel Rajiv Nayar, appearing for Amazon, opposed the mentioning, saying the HC's procedure ought to be followed.However, senior counsel Rajiv Nayar, appearing for Amazon, opposed the mentioning, saying the HC's procedure ought to be followed.

Future Retail on Wednesday moved the division bench of the Delhi High Court challenging the court’s single judge’s order on Tuesday that asked it to maintain status quo with regard to the Rs 24,713-crore deal with Reliance Retail.
A bench comprising Chief Justice DN Patel and Justice Jyoti Singh agreed to hear the appeal on Thursday. It rejected FRL senior counsel Darius Khambata’s request to hear the stay application in the afternoon itself. “FRL will be saved from insolvency..the matter is coming up tomorrow otherwise..”, Khambata told the judges.

However, senior counsel Rajiv Nayar, appearing for Amazon, opposed the mentioning, saying the HC’s procedure ought to be followed.

Alleging that the single judges’s order will “jeopardise” the entire amalgamation scheme and will affect public at large, Future Group, in its petition, stated that Tuesday’s order will bring the merger scheme between FRL, Reliance Retail Ventures and Reliance Retail and Fashion Lifestyle to a standstill and will “effectively derail the entire scheme; much less when the Scheme has been approved by statutory authorities in accordance with law”.

FRL said that it has filed the petition for seeking approval for its scheme of amalgamation before the NCLT after getting nod from the Competition Commission of India on November 20 and observation letters from stock exchanges granting approval to the scheme on January 20.

The single judge of Justice JR Midha had on Tuesday dealt a major blow to Future Group by directing it to maintain status quo till further orders with regard to its deal with Reliance Retail wherein it has sold its certain retail assets to the latter. The deal has been objected to by Amazon which is seeking enforcement of an award by Singapore’s Emergency Arbitrator (EA) which has restrained Future Group from going ahead with the transaction.

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
1Bank of Baroda document shows stress may be higher than foreseen
2Uber India’s mobility biz showing recovery led by demand for low-cost products
3Malls may unveil Victoria’s Secret stores as early as next year