Delhi HC Stays Single-Judge Status Quo Order on FRL-Reliance Deal
The High Court also declined Amazon’s request to suspend its decision regarding the Future-Reliance deal for a week.
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The Delhi High Court on Monday, 8 February put a stay on the single-judge direction to Future Retail Ltd (FRL) to maintain status quo on ₹24,713 crore deal with Reliance Retail, PTI reported.
The High Court also declined Amazon's request to suspend its decision regarding the Future-Reliance deal for a week.
The court was hearing an appeal by FRL challenging the 2 February order of Justice JR Midha, which directed to maintain status quo on the ₹24,713 crore deal with Reliance Retail.
The court stated that FRL was not a party to an arbitration agreement with Amazon and prima facie opined that ‘group of companies’ doctrine could not be invoked in this case as the three agreements i.e. Future Retial Shareholding Agreement (SHA), Future Coupons Pvt Ltd (FCPL) SHA and FCPL Share Subscription Agreement are distinct in nature, Bar and Bench reported.
"Statutory authorities should not be restrained from proceeding in accordance with law on Future-Reliance deal," the HC further said in its verdict, PTI reported.
The order was passed by a Division Bench consisting of Chief Justice DN Patel and Justice Jyoti Singh, Bar and Bench reported.
The HC also sought Amazon’s stand on the FRL appeal against single judge direction to maintain status quo on Rs 24,713 crore deal with Reliance Retail, PTI reported.
(With inputs from Bar and Bench and PTI)
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