Delhi HC order to have no bearing on case with Amazon as matter in SC: Future Group

Updated : March 18, 2021 06:11 PM IST

Reacting to the order by the Delhi High Court, the Future Group has said it has no bearing on the status quo of the ongoing case with Amazon since the matter is already in the Supreme Court.

The matter is expected to come up for hearing in the last week of April, the Future Group statement said.

"In the meanwhile as per Hon’ble Supreme Court’s interim order dated 22nd Feb, 2021, NCLT is allowed to continue its proceedings but same shall not culminate in any final order of the sanction of the scheme," the Future Group statement said.

Below is the full statement from the Future Group.

"On 25th January 2021 Amazon sought to enforce the Emergency Order after a period of three months by preferring an application before a single judge of the Delhi High Court. The Single Judge of the Hon’ble Delhi Court on 2nd February 2021 passed an ad-interim inter alia restraining Future Retail Limited (FRL) from taking any steps in furtherance of the Scheme. Additionally, the Single Judge stated that he shall give detailed reasons for passing such an ad interim order, as quoted “detailed reasons shall be given in the reserved order”. (“Status Quo Order”). As such the Single Judge said he will give reasons later. On 18th March 2021, the Learned Single Judge of the Delhi High Court has fixed the matter for pronouncement of the detailed reasoning for the Status Quo Order. Accordingly, the Court will only be giving its detailed reasoning for the Status Quo Order, the subject matter of which is already pending before the Supreme Court.

FRL filed an Appeal against the Status Quo Order, before the Division Bench of the Hon’ble Delhi High Court. After hearing the submissions of FRL and Amazon at length, on 8th February 2021 the Division Bench stayed the operation, implementation and execution of the Status Quo Order (“Division Bench Order”).

Amazon filed a Special Leave Petition (“SLP”) before the Hon’ble Supreme Court of India against the Division Bench Order. The SLP was listed for admission on 22nd February 2021, wherein the Hon’ble Supreme Court of India issued notice and set a schedule for filing of pleadings and said the matter could be listed thereafter. The Hon’ble Supreme Court has further specifically ruled that the proceedings before NCLT will be allowed to go on but will not culminate in any final order of sanction of the Scheme. On 18th March 2021, Amazon mentioned the matter and informed the Supreme Court that the pleadings in the matter have been completed and requested the Court to fix the matter for hearing. Accordingly, the Supreme Court was pleased to fix the SLP for hearing in the last week of April."

Earlier today, the Delhi High Court directed Kishore Biyani and all directors of the Future Group to appear in person before the court at the next hearing of the case . The court in its order went on to say that Future Retail and Biyani deliberately and wilfully disobeyed its order and were thus liable to face action.

The court also ordered that the assets of Kishore Biyani, Future promoter directors should be attached and asked them to file an affidavit to show cause why they should not be detained in civil prison for 3 months for violation of the Emergency Arbitration orders.

In addition, the Delhi HC slapped costs of Rs. 20 lakh on Future Group, Kishore Biyani, and asked for money to be deposited with PM relief fund. Future Retail and Future Coupons have been directed to approach all regulators to recall the approvals given for the scheme of arrangement.

In December 2020, the Delhi High Court had rejected Future Retail’s plea seeking an ad-interim injunction. The case then found its way to the Supreme Court where a bench headed by Justice Nariman, made it clear that Future Retail can proceed with seeking shareholders' nod for this entire transaction moving forward.

The only caveat is that the Supreme Court has said that no final orders will be passed by the NCLT. The apex court has today (March 18) listed the Amazon versus Future case for hearing in the last week of April.

Published : March 18, 2021 06:11 PM IST

Delhi HC order to have no bearing on case with Amazon as matter in SC: Future Group

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