Supreme Court bars NCLT from giving approval to Future-Reliance deal
New Delhi : The Supreme Court on Monday agreed to hear Amazon’s petition against the Delhi High Court’s decision in relation to the Reliance Retail and Future Retail Limited (FRL) deal. Along with this, the apex court stayed the direction of the single judge of the High Court to maintain the status quo and asked the National Company Law Tribunal (NCLT) not to take any final decision on the merger of FRL with Reliance.
America’s leading e-commerce company has moved the Supreme Court against the order of the Division Bench of the High Court. The High Court order opened the way for the Reliance-FRL deal.
During the brief hearing, the court proposed to pass an order before NCLT to stop the proceedings. The Future Group approached the tribunal for regulatory approval for the Rs 24,713 crore deal with Reliance.
Senior advocate Harish Salve, appearing for the Future Group, however, said that the adjournment order of the court would drag the NCLT proceedings for at least 6 weeks. While registering their arguments, the bench said that the NCLT proceedings would continue but the final order will not be issued on the merger of FRL with Reliance.
The Delhi High Court on February 8 stayed the order of its single bench to retain status quo in relation to the Rs 24,713 crore agreement signed with FRL and various statutory authorities with Reliance Retail. This interim order came on the petition of the FRL against the February 2 order of the single bench of the High Court.
Reliance shares fall –
The decline in the stock markets continued for the fifth consecutive trading session on Monday. Sensex fell 1145 points due to the fall in shares of big companies like Reliance Industries, Tata Consultancy Services and HDFC.
The negative trend of global markets also affected the market sentiment. The 30-share BSE Sensex fell by 1145.44 points, or 2.25 percent, to 49744.32 points. Similarly, the National Stock Exchange’s Nifty lost 306.05 points, or 2.04 per cent, down from 14700 points to close at 14675.70.
