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Wednesday, February 24, 2021

Future group-Reliance Retail deal: Delhi HC stays status quo order

The “Group of Companies’ Doctrine” cannot be invoked, the Division Bench said. Prima facie, it said, the three agreements are different. “Prima facie, there was no reason to seek a status quo order before the Single Bench.”

By: Express News Service | New Delhi |
February 9, 2021 3:38:31 am
The authorities were also directed to file a status report within 10 days.

The Delhi High Court on Monday stayed the operation, execution and implementation of a single-judge Bench order which last week directed the Future Group to maintain a status quo with regard to its deal with Mukesh Ambani-led Reliance Retail, and said that statutory authorities like Sebi, CCI and NCLAT should not be restrained from proceeding in accordance with law.

The Division Bench of Chief Justice D N Patel and Justice Jyoti Singh said that Future Retail Ltd (FRL) is not a party to an agreement between Amazon and Future Coupons Pvt Ltd (FCPL), and that in the agreement between Reliance Retail Ltd (RRVL) and FRL, Amazon is not a party. In its order, the Bench also noted that FRL has an agreement with FCPL.

The “Group of Companies’ Doctrine” cannot be invoked, the Division Bench said. Prima facie, it said, the three agreements are different. “Prima facie, there was no reason to seek a status quo order before the Single Bench.”

While directing Future Group to place on record the actions taken by it after the date of Emergency Arbitrator (EA) award by the Singapore International Arbitration Centre (SIAC) and the present status of all those actions, the single-judge Bench on February 2 had directed all authorities to maintain a status quo with respect to all matters in violation of the October 25, 2020 order of the EA by which the Future Group was restrained from proceeding with its deal with “entities part of Mukesh Dhirubhai Ambani (MDA) Group”.

The authorities were also directed to file a status report within 10 days.

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