SC notice to Future Retail Chairperson Kishore Biyani, others on Amazon's plea

SC said the proceedings before the National Company Law Tribunal will go on and but will not culminate into any final order on amalgamation of FRL with Reliance

The Supreme Court on Monday sought a reply from Future Retail Ltd and others on Amazon's plea against the Delhi High Court direction to maintain the status quo on the Future-Reliance deal.

A bench of Justices R F Nariman and B R Gavai issued notices to Future Retail Ltd, Chairperson Kishore Biyani and others. The court, however, asked the National Company Law Tribunal not to pass a final order on the amalgamation of Future Retail Ltd (FRL) with Reliance Retail.

The US-based e-commerce giant approached the court against the order by the division bench the High Court, allowed the Reliance-FRL deal. During the brief hearing, the apex court proposed to pass an order to stay the proceedings before the National Company Law Tribunal (NCLT).

Read more: Amazon had asked for $40mn as compensation for RIL deal: Future Group

The Future group had moved the tribunal seeking regulatory approvals to the Rs 24,713 crore deal with Reliance. Senior advocate Harish Salve, appearing for the Future group, said however that the top court's stay order will prolong the proceedings before the NCLT by at least six weeks.

Recording his submission, the bench said, "The NCLT proceedings will go on but will not culminate into any final order on an amalgamation of FRL with Reliance."

The reply is to be filed in three weeks and a rejoinder to it two weeks thereafter, the bench said, adding that the appeal will be listed for hearing after five weeks. The Delhi High Court on February 8 had stayed its single judge direction to FRL and various statutory authorities to maintain the status quo on the mega-deal.

The interim direction was passed on FRL's appeal challenging the February 2 order of the single judge. In August last year, Future had reached an agreement to sell its retail, wholesale, logistics and warehousing units to Reliance.

Subsequently, Amazon took FRL into an emergency arbitration before the Singapore International Arbitration Centre (SIAC) over an alleged breach of contract by the Future group.