In a big relief to Kishore Biyani-led Future Group, the Supreme Court on Tuesday set aside the Delhi High Court’s three interim orders that had restrained FRL from selling its retail assets to Reliance Retail till it decided the Singapore arbitration proceedings initiated by Amazon in 2020.
A bench presided over by Chief Justice N V Ramana remanded the matter back to the HC to decide all issues afresh.
The court said, "It is expected of the courts to be cautious and afford a reasonable opportunity to parties, especially in commercial matters having a serious impact on the economy and employment of thousands of people.”
A single bench of justice J R Midha in two February last year’s orders had held FRL, Future Coupons and the group promoters, including Kishore Biyani, guilty of violating the emergency arbitrator’s decisions and had directed Future group to approach the authorities to recall all approvals granted to the Future-Reliance deal.
However, on appeal by the Future group, the top court said the precondition of "sufficient mental element for wilful disobedience" was not satisfied here.
The spat between Future Group and Amazon has been on since October 25, 2020, when Singapore's EA passed an interim order restraining FRL from going ahead with its Rs 24,713-crore merger deal with Reliance Retail.
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In a related development, the top court asked the lenders of the Future Group to explain in two days why they should not be restrained from declaring the Kishore Biyani firm as a defaulter for failing to pay their loan dues to the tune of Rs 3,494.56 crore, the deadline for which lapsed on December 31.
While seeking a response from the banks, the bench asked them to take a “realistic approach” in the matter and consider the consequence of their action on the debt-laden Future Group. The court posted the matter for hearing on Friday.
Future Retail had last week moved the apex court seeking protection from being declared a defaulter, alleging that the lenders had sent notices to it earlier last month despite being aware of the impact of Covid-19 pandemic on its business and stores, and also the freeze on the sale of its small-format stores due to its ongoing dispute with Amazon.
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