After Amazon, Clix Capital Approaches Court Against Future Group
The Delhi High Court has allowed an application filed by Clix Capital Services Pvt. to restrain Acute Realty Pvt.—a Future Group entity—from alienating or creating third-party interest on its mall property in Durgapur, West Bengal.
Clix Capital extended loans of more than Rs 90 crore to Future Capital Investment Pvt., against a pledge on the shares of Future Retail Ltd. and Future Consumer Ltd. The lending firm moved court seeking an interim relief against the Future Group entities after a reduction in the agreed security cover caused by a fall in the price of pledged shares.
A single judge bench of Justice Hari Shankar observed there’s no prima facie dispute about the fall in the agreed security cover. Further, the mall property owned by Acute Realty was provided as an additional security against the loan. Citing this, the court restrained the company from alienating or creating third-party interest in the property till the final disposal of the case.
Sale Of Property Will Result In Injury, Says Clix Capital
Clix Capital filed an application under section 9 of the Arbitration and Conciliation Act, which allows a party to seek interim or pre-arbitration relief prior to commencement of the arbitration proceedings.
Senior Counsel Rajiv Nayar, arguing for Clix Capital, informed court about a communication received from Future Group describing its reorganisation, involving a merger of key group companies with Future Enterprises Ltd., and their further sale to various entities controlled by billionaire Mukesh Ambani.
He sought a relief from the court saying:
- Any alienation of the mall property as a result of Future Group’s reorganisation will result in an injury to Clix Capital.
- The property is part of the security against the loan extended to Future Group, the repayment of which is partly outstanding.
- A clear ground exists for grant of an ad interim relief under section 9 of the Arbitration Act which will ensure that Clix Capital’s case is not frustrated.
Sandeep Sethi, counsel for Future Capital, argued that Clix Capital was acting as a front for the Amazon Group to hinder its reorganisation process and was arm-twisting the Future Group entities. Further, Clix Capital already had more than 5.25 crore Future Consumer shares which could be utilised against the outstanding loan amount.
The court will next hear arguments in the Clix Capital case on Feb. 18.