Munmun Kaur
Published On: January 28, 2022 at 11:59 IST
The Supreme Court on January 27, agreed to hear a fresh Petition from Future Retail against lenders on January 31. The Petition filed by Future Retail sought quashing of lenders letters threatening initiation of Insolvency Proceedings.
Further, the Plea also mentioned Future Retail’s live deal with Reliance Retail for the sale of assets for nearly Rs 25,000 crore, which is virtually stalled because of cross-country Litigations initiated by American multi-national Amazon.
Senior advocate Mukul Rohatgi, appearing for the company sought an urgent hearing of the matter. A Bench headed by Chief Justice of India N V Ramana said that a Bench headed by him had already reserved Orders on a number of issues involving Future Retail, Future Coupon, and Amazon on the subject of the sale of retail assets to Reliance Retail.
The Bench further said that it would have to hear arguments from Amazon apart from the banks which have sent the Insolvency notice and asked Future Retail to serve a copy of the Petition to Amazon.
The Bench said, “We will have to hear arguments from Amazon apart from the banks which have sent the insolvency notice”.
Future Retail in its Petition sought direction from Supreme Court to the lenders to withdraw their notices. It was further submitted that due to Amazon invoking Arbitration in which Future Retail is a non-signatory, its deal with Reliance Retail has been stalled, as a result of which it had not been able to monetize its ‘Small-format stores’ and other assets.
Also read: Insolvency and Bankruptcy Code (Amendment) Bill, 2021