Future Retail moves SC to stay HC orders

New Delhi: Kishore Biyani-led Future Retail Ltd on Saturday said it has approached the Supreme Court against orders passed by the Delhi High Court to maintain the status quo in relation to its Rs 24,713 crore deal with Reliance Retail and directing it to enforce the order of the Singapore-based Emergency Arbitrator.

In a regulatory filing, Future Retail said, "Please be informed that the company has filed a special leave petition before Hon'ble Supreme Court of India against the impugned orders dated 2nd February 2021 and 18th March, 2021 passed by 'Ld. Single Judge'...The SLP will be listed for hearing in due course."

In its petition, the company stated that "here is extreme urgency to hear" and "stay the Impugned Orders" passed by the single-member bench of Delhi High Court, failing to which the company would go into liquidation. Future Retail, in its petition, said the scheme of amalgamation, which will be listed before the NCLT, cannot go through due to the orders of the High Court.

".... and as a result of which the Scheme which benefits all the stakeholders, including the public at large and various public sector banks may fall through; If the Scheme falls through, it is inevitable that FRL will go into liquidation," it said.

Besides "approximately Rs 28,000 crore of public money in the form of bank loans and debentures issued by FRL and its group companies is also be at risk," said the Future group firm in its appeal. The magnitude of damage that may be caused to the public at large is "unimaginable" as livelihoods of more than 35,575 employees of FRL and various companies that are part of the Scheme may be lost, it added.