The Supreme Court on Friday asked whether it can pass any interim order on a plea of Amazon that Future Retail’s assets, including Big Bazaar shops, not be alienated till the dispute over its merger with Reliance Retail is decided by the arbitral tribunal.
A bench headed by Chief Justice N.V. Ramana, which has now posted the plea of the US e-commerce major for further hearing on April 4, said the landlords of the FRL shops are not before it and the question is if such an order restraining the alienation of assets till the conclusion of arbitration can be passed.
“If tenants or landlords are not before us how can the court pass an order injuncting them from taking possession (of shops),” said the bench which also comprised Justices Krishna Murari and Hima Kohli.
At the outset, senior advocate Gopal Subramanium, appearing for the US firm, said that as far as the resumption of the arbitration proceedings is concerned, there was no difference of opinion between Amazon and the Future group.
“But there cannot be a sudden handover of assets,” Subramanium said, adding that the US firm needed an interim order “against alienation of the assets in favour of any other party and assets must continue to remain with FRL and operate with FRL until the matter is resolved by the arbitral tribunal.” He said that over 800 shops of FRL have been vacated and taken over by the Reliance group.
Senior advocate Harish Salve, appearing for FRL, said that around 374 shops are with the group and it is not going to give them to anybody on its own unless some landlords throw them out. “My bank accounts are frozen I can’t pay rent. Everyone is hoping if the scheme gets through and Reliance comes in and everyone will get the money,” he said.
There is no money to pay the rentals and, moreover, if the lending banks come it then the IBC (Insolvency and Bankruptcy Code) will come in the picture.
The bench was also told by senior advocate Rakesh Dwivedi, appearing for lending banks of Future group, that no interim order, which is prejudicial to the interests of the banks, be passed in the matter.
