SC asks whether it can pass orders restraining alienation of FRL's assets

The Supreme Court asked whether it can pass any interim order on a plea of Amazon that Future Retail Ltds assets including Big Bazaar shops not be alienated till the dispute over its merger with Reliance Retail is decided by the arbitral tribunalA bench headed by Chief Justice NV Ramana which has now posted the plea of US ecommerce major for further hearing on April 4 said the landlords of the FRLs shops are not before it and the question is if such an order restraining the alienation of assets till conclusion of arbitration can be passedIf tenants or landlords are not before us how can the court pass an order injuncting them from taking possession of shops said the bench which also comprised Justices Krishna Murari and Hima Kohli At the outset senior advocate Gopal Subramanium appearing for the US firm said that as far as resumption of the arbitration proceedings are concerned there was no difference of opinion between Amazon and Future groupBut there cannot be sudden handover of assets Subramanium said adding that the US firm needed an interim order against alienation of the assets in favour of any other party and assets must continue to remain with FRL and operate with FRL until matter is resolved by the arbitral tribunal He said that over 800 shops of FRL have been vacated and taken over by Reliance group Senior advocate Harish Salve appearing for FRL said that around 374 shops are with the group and it is not going to give them to anybody on its own unless some landlords throw it outMy bank accounts are frozen I cant pay rent Everyone is hoping if scheme gets through Reliance comes in and everyone will get the money he said adding that there was no money to pay the rentals and moreover if the lending banks come it then the IBC Insolvency and Bankruptcy Code will come in picture The bench was also told by senior advocate Rakesh Dwivedi appearing for lending banks of Future group that no interim order which is prejudicial to the interests of the banks be passed in the matter The bench has now posted the matter for further hearing on April 4 when Amazon would respond to the submissions of Future groupEarlier the bench had assured an early hearing on the plea of Amazon Prior to this Amazon had apprehended the disappearance of assets and sought an interim order from the top court to ensure the preservation of assets of Future Retail Ltd besides resumption of arbitration over FRLs merger deal with Reliance Retail The bench had taken note of the allegations of the US firm that the applecart was being upset by its rivals and asked the Future group firms FRL and Future Coupons Ltd FCPL to respond to the interim plea of Amazon Amazon and Future group are engaged in multiforum litigation on the issue of FRLs merger deal to the tune of Rs 24500 crore with Reliance Retail Ltd after the US ecommerce giant dragged FRL to arbitration at the Singapore International Arbitration Centre in October 2020It has been alleged by Amazon that on March 3 as many as 600 stores of FRL were taken away by Reliance The plea was vehemently objected to by the Future group lawyers on Tuesday The top court was told by Amazon that besides seeking resumption of arbitral proceedings it wanted an order so that the FRLs assets are there for it if it wins the arbitration as the applecart was being upset The bench is hearing Amazons appeal against the January 5 order of the Delhi High Court which stayed the arbitration proceedings before the arbitral tribunal over Future Retails merger deal with Reliance RetailThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever