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

Mumbai, February 13: 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, the Business Standard reported.

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.

https://www.business-standard.com/article/companies/nclt-raps-amazon-in-future-case-don-t-be-a-perpetual-objector-121021300073_1.html