Future to contest HC order on Biyani over Reliance deal
Two people familiar with Future Group’s legal plans confirmed this to Mint, adding that an appeal challenging the order may be filed on Monday or Tuesday.
Future Group has decided to challenge the Delhi high court (HC) order directing detention of its founder Kishore Biyani and attachment of his assets, while restraining the debt-laden group from taking any step towards its proposed ₹24,713 crore asset sale deal with Mukesh Ambani-led Reliance Industries Ltd (RIL).
Two people familiar with Future Group’s legal plans confirmed this to Mint, adding that an appeal challenging the order may be filed on Monday or Tuesday. “An appeal challenging this order is inevitable. First, Delhi HC will be approached so that if any unfavourable judgement comes, the option of approaching the Supreme Court is kept available,” one of the two people cited above said on condition of anonymity.
“Future Group feels that the Delhi HC seems to have gone beyond its scope by passing certain orders that were never a part of the prayer or any appeal filed by Amazon or any other party. Imposing monetary penalty for allegedly breaching an arbitration order; ordering attachment of assets and urging detention of Biyani are additional areas that have been entered by the single-judge bench without any such prayer by the appellant before the Delhi HC,” the first person said.
“These arguments will form the main part of the appeal when the single bench order is challenged by Future Group next week,” this person added.
In an exchange filing on Friday, Future Retail Ltd (FRL) said the operative portions of the latest order have already been covered by the ad-interim order on February 2, which was stayed by a division bench of Delhi high court in an appeal filed by FRL. “With respect to the other directions passed by the learned single judge, the promoters (Biyanis) will take appropriate remedies as advised,” it said.
“The Supreme Court has not vacated the stay granted by the division bench (which is still in operation). The Supreme Court has directed that, in the meantime, the NCLT proceedings will be allowed to go on but will not culminate in any final order of sanction of scheme. We are advised that this (Delhi HC) order does not come in the way of the continuance of the ongoing NCLT proceedings, being inconsistent with the order dated February 22 of the top court,” it added.
Emails sent to spokespeople for Future Group and Amazon India remained unanswered till the time of going to press.
On Thursday, a single-judge bench of the Delhi HC ordered FRL not to take any further step towards its controversial deal with RIL while holding that FRL has “wilfully violated Singapore International Arbitration Centre’s emergency order” with regards to the deal.
