The National Company Law Tribunal (NCLT) on Tuesday allowed Future Group companies to hold meetings of their shareholders and creditors to seek approval for the planned sale of assets to Reliance Retail Ventures Ltd.
A Mumbai bench of NCLT comprising Suchitra Kanuparthi and Chandra Bhan Singh also dismissed an intervention application filed by e-commerce company Amazon, listed Future group companies said in identical regulatory filings.
The NCLT dismissed Amazon’s application on the ground that it was premature, Press Trust of India reported, citing people it did not name.
The report cited NCLT as observing that no prejudice was caused in conducting these meetings since Amazon is still free to object when the final scheme is filed for NCLT approval.
The scheme of arrangement between Future and Reliance Retail involves the consolidation of Future Group’s retail, wholesale, logistics and warehousing assets into one entity —Future Enterprises Ltd—and then transferring it to Reliance Retail on a slump sale basis.
In August last year, Reliance Retail had said it will acquire the retail, wholesale and the logistics and warehousing businesses of Future Group for ₹24,713 crore.
The transaction was challenged by Amazon, an investor in Future Coupons, which is, in turn, a shareholder in Future Retail Ltd.
In August 2019, Amazon acquired 49% in unlisted Future Coupons with the right to buy into the flagship Future Retail in three to 10 years.
Amazon claims the terms of their agreement barred Future from selling assets to specific restricted entities, including Reliance Industries.
In October, an interim award was passed by an emergency arbitrator in Singapore in favour of the US e-commerce leader.
The order barred Future Retail from taking any step to sell or encumber its assets or issue any securities to secure any funding from a restricted party.
Amazon and Future have also tangled in Indian courts, including the Supreme Court, over the transaction.
The apex court recently ruled in favour of Amazon by holding that the emergency arbitrator award was valid and enforceable under Indian laws.
Notably, Future Retail on 28 August said it approached the Supreme Court against an order passed by the Delhi high court to maintain the status quo in relation to the deal and directing it to enforce the order of the Singapore-based emergency arbitrator.
Source: Mint