Delhi high court bench lifts stay on Future-Reliance deal

10 Feb '21

2 min read

Pic: Shutterstock

A two-judge bench of the Delhi high court recently lifted the status quo on Future Group’s deal with Reliance Industries (RIL). Earlier, based on Amazon’s petition, a single-judge order had asked Future and all other authorities to maintain status quo on the ₹24,731-crore Future-RIL deal. The high court will hear the matter again later this month.

Amazon had moved the court to enforce the emergency order from Singapore International Arbitration Centre (SIAC) and stop Future from taking any steps to complete the RIL deal. The single-judge bench is yet to give its final order on the original Amazon petition as well.

However, the high court noted that authorities like the Securities and Exchange Board of India (SEBI) and the Competition Commission of India (CCI) could not be restrained from ‘proceeding in accordance with law’, according to Indian media reports.

“The bench comprising Chief Justice D N Patel and Justice Jyoti Singh, has stayed the operation and effect of order passed by single judge, 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 and the promoters of Future Retail, under which arbitration was initiated by Amazon in Singapore,” a filing to the Bombay Stock Exchange said.

Future Retail has filed an application with the National Company Law Tribunal (NCLT) seeking approval for its deal with RIL. SEBI has given a conditional nod to the deal, and CCI has cleared it.

Fibre2Fashion News Desk (DS)

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