Reliance-Future Deal: Future Retail to Challenge Delhi High Court Order

In its 134-page judgment, Justice Midha directed Kishore Biyani-led FRL not to take further action on the deal with Reliance and held that the group willfully violated the EA''s order.

Kishore Biyani-led Future Retail on Friday said the order passed by the single-member bench of the Delhi High Court would have no impact on the NCLT proceedings for its Rs 24,713 crore deal with Reliance Industries and said it is considering "appropriate remedies" against it.

A day after the Delhi High Court has upheld the Singapore International Arbitration Centre's (SIAC) order, Kishore Biyani-led Future Retail on Friday said the decision would have no impact on the NCLT proceedings for its Rs 24,713 crore deal with Reliance Industries and said it is considering an appeal challenging the order.

As per the business publication Mint, Future Retail is likely to file an appeal challenging the order by Monday or Tuesday.

What is Future Retail considering?

As per the publication, the appeal will be made in Delhi HC so that if any unfavourable judgement comes, then there will be the option to approach the Supreme Court. According to the regulatory filing by the company, the promoters will take appropriate remedies as advised over the directions passed by Justice J R Midha.

"We are advised that this order does not come in the way of the continuance of the ongoing NCLT proceedings, being inconsistent with the order dated February 22, 2021, of the Supreme Court," said Future Retail.      

Future Group has reportedly moved the SIAC urging to review its October ruling and exclude Future Retail Ltd (FRL) from the order.

What did the high court order say?

In its 134-page judgement, Justice Midha directed Kishore Biyani-led FRL not to take further action on the deal with Reliance and held that the group willfully violated the EA''s order. The high court rejected all the objections raised by Future Group and imposed a cost of Rs 20 lakh on it as well as its directors.

It is to be pointed out that the portions of the operative part of this detailed order, already covered by the ad-interim order dated February 2, 2021, has been stayed by the Division Bench of Delhi High Court in an appeal filed by Future Retail.

The court directed attachment of properties of Kishore Biyani and others related to Future Group and asked them to show cause as to why they be not detained for three months under civil prison for violating the emergency arbitrator's order.