NCLT breather for RIL, Future Group
Tribunal allows Biyani-led retailing firm to hold shareholders’ meeting on sale of assets to RIL
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New Delhi: The National Company Law Tribunal (NCLT) on Tuesday allowed Kishore Biyani-led Future Group firms to hold meetings of its shareholders and creditors to seek approval for the sale of assets to Reliance Retail Ltd (RRL).
A Mumbai-based two-member NCLT bench comprising Suchitra Kanuparthi and Chandra Bhan Singh dismissed the application filed by e-commerce major Amazon opposing the scheme of merger of the Future group companies, sources close to the development said. Emails sent to Amazon and Future did not elicit any response. Amazon had filed an application objecting to NCLT considering the scheme pending completion of its arbitration proceedings against Future Retail. The NCLT dismissed Amazon's application on the ground that it was premature, the sources said. Moreover, no prejudice is caused in conducting shareholders and creditors meetings for considering the scheme since it will be open to Amazon for raising objections when the scheme is filed for the NCLT's final approval after the shareholders and creditors give the go-ahead, the sources added.
The tribunal also pointed out that the Supreme Court had only restrained it from pronouncing the final order approving the scheme, according to the sources. Now, it will be open for Future Group to obtain all preparatory approvals from shareholders and creditors. Future Group may be able to save at least 6-9 months time for the implementation of the scheme in the scenario of it winning the arbitration, the sources added.
