NCLT raps Amazon in Future case: Don't be a 'perpetual objector'

The Mumbai Bench of the NCLT asked both parties to file written submissions. The next hearing in the matter would be held on February 15
The National Company Law Tribunal (NCLT) on Friday told Amazon that it should not be a “perpetual objector” and the e-commerce giant had no locus standi in Future Group’s plea to hold a shareholder meeting, according to reports. The tribunal also reserved its orders on the matter regarding nod to Future Group to hold the shareholder meeting for consolidation of assets.

The Mumbai Bench of  the NCLT asked both parties to file written submissions. The next hearing in the matter would be held on February 15.

Future Group had moved an application in the NCLT under Section 230-232 of the Companies Act, 2013, seeking its approval to hold a shareholder meeting, but Amazon sought to intervene and also objected to it as related cases pertaining to the deal struck between the retail giant and Reliance Industries were pending before the Delhi High Court and the Supreme Court.

Amazon argued before the tribunal that the emergency arbitrator’s order barred Future Retail from taking any step to dispose of assets. But, the NCLT observed that the Competition Commission of India (CCI) and the Securities and Exchange Board of India (Sebi) had approved the amalgamation deal of Future Retail and Reliance Industries after the arbitrator’s order.

Reliance group entities, too, have moved an application before the NCLT, seeking its go-ahead for the deal. In August 2020, Future Group had struck a $3.4-billion asset sale deal with Reliance Industries. 

Amazon has already moved the Supreme Court challenging the Delhi High Court order that stayed the implementation of status quo direction passed by a single-judge Bench.





Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel