Reliance-Future Deal: Supreme Court Asks High Court To Decide On NCLT Proceedings
The order was pronounced by the bench presided by Chief Justice of India Justice NV Ramana.
The Supreme Court of India has asked the Future Group to approach the Delhi High Court on continuation of the proceedings pending before the National Company Law Tribunal.
The Future Group is seeking to resume the process of NCLT approval for its Rs 27,513-crore transaction with Reliance Retail Ventures Ltd. The top court on Tuesday asked the high court to decide on allowing the continuation of the proceedings.
Earlier this month, the top court had reserved its order on the Future Group’s plea. During the hearings, Future Retail Ltd. had told the court that the NCLT approval required multiple steps which would take a few months and therefore the court should allow the process to continue.
The ask was opposed by Amazon.com NV Investment Holdings LLC on grounds that Future Retail had earlier consented before the apex court that it'll not pursue regulatory authorities to pass any final orders.
This was in September last year, basis which the apex court had asked regulatory authorities like the Competition Commission of India, the Securities and Exchange Board of India and the NCLT to not pass any final orders on the transaction between Reliance Retail and the Future Group entities.
Meanwhile, the NCLT Mumbai had allowed Future Retail to convene a meeting of its shareholders and creditors for consolidation of its entities, the first step in its ultimate sale to Reliance Retail. But in November, the tribunal ordered a temporary stay on the meeting of the shareholders after Future Retail requested a deferment of the scheduled meetings.
The Future Group entities have filed an application under Sections 230-232 of the Companies Act, 2013, which deal with schemes of arrangement, mergers and amalgamation. The scheme involves merger of as many as 19 group entities, including five listed and 11 promoter companies, into Future Enterprises Ltd.