new Delhi: The Delhi High Court on Monday stayed the order of a single judge in connection with a business acquisition deal worth Rs 24,713 crore between Future Retail Limited (FRL) and Reliance Retail. In the order of a single judge bench, the FRL and various statutory bodies were asked to maintain the status quo. A bench of Chief Justice DN Patel and Judge Jyoti Singh gave this interim order during the hearing of the FRL’s petition challenging the single judge’s February 2 order.
Amazon’s demand rejected
The bench hearing the matter said that statutory bodies like National Company Law Tribunal, Competition Commission of India (CCI) and market regulator SEBI (SEBI) cannot be prevented from proceeding as per law in respect of the deal. The court also rejected Amazom’s request that the court hold its order for a week, in the meantime, to consult it to take appropriate steps. The same bench also issued notice to Amazon and sought its favor on the appeal of FRL by 26 February. After that, the matter will be heard daily.
This was the case
Amazon had filed an appeal before a single judge bench of the High Court to implement the interim order of the Emergency Arbitration Tribunal of Singapore on the deal. The tribunal gave an interim order to Future Future to stop its Rs 24,713 crore deal with Reliance Retail. On Monday, the bench said in its interim order that it was the first to stayed the order of a single judge. Amazon and Future Coupons Pvt. Ltd. FRL was not a party to the Share Subscription Agreement (SSA) between (FCPL) and similarly there is no party to the deal between the US e-commerce company FRL and Reliance Retail.
The bench said prima facie it believes that the shareholding agreement (SSA) between FRL and FCPL, the share grant agreement between FCPL and FCP and the deal between FRL and Reliance Retail are different things. That is why the principle of corporate group cannot be applied here.