In a huge relief to Future Retail Limited (FRL) and its subsidiary Future Coupons Limited (FCL), the Supreme Court on Tuesday set aside a Delhi high court order for the implementation of an international arbitration award in favour of Amazon.

The high court had passed the impugned order after Amazon challenged Future Retail’s Rs 25,000-crore merger with Mukesh Ambani’s Reliance Retail on the ground the deal violated the agreement between Amazon and the FRL that no such transaction can be entered into without Amazon’s consent.

A three-judge bench headed by Chief Justice of India N.V.Ramana on Tuesday said the high court orders suffered from “serious procedural errors” and violation of “principles of natural justice”. It asked the high court to consider the matter afresh.

“From the record, we observe that FRL and FCPL were not provided sufficient time or opportunity (by high court) to file their counter or raise their defense. On January 29, 2021, they were allowed to file a brief note of submission within 24 hours, before orders were passed on February 2, 2021,” the court said.

RBI views

The Supreme Court decided to seek the views of the RBI on the Future Group’s plea challenging the move of a consortium of 27 banks to classify the company as a non-performing asset (NPA) or not.

The apex court also asked the consortium of banks to file a joint affidavit in support of their move for initiating the bankruptcy proceedings against the company.

“We have heard Mr. Harish Salve, learned Senior counsel appearing for the petitioners and Mr. Rakesh Dwivedi, learned Senior counsel appearing for Respondent Nos. 2 to 28 for some time. Learned Advocate ­on­ Record appearing for the petitioners is directed to serve a copy of this Writ Petition upon the Reserve Bank of India immediately.

Learned Senior counsel appearing for Respondent Nos. 2 to 28 is directed to file affidavit in the matter. List the matter on 3­.02.2022.,” the bench said in an order while posting the matter for further hearing to Thursday.

By Thursday RBI is expected to make its stand on the issue or seek some time to modulate its response.

FRL has pleaded with the Supreme Court that the banks be restrained from initiating any proceedings against its for non payment of dues to the tune of Rs 3,500 cr.