Nishka Srinivas Veluvali
Published On: February 03, 2022 at 18:48 IST
The consortium of banks has sought initiation of Insolvency Proceedings against the Future Retail Limited (FRL) has requested the Supreme Court to allow Amazon and Reliance to bid for the Future Company.
Senior Advocate Rakesh Dwivedi, representing the consortium informed the Bench of Chief Justice of India NV Ramana, Justice AS Bopanna and Justice Hima Kohli, “Amazon and Reliance who are cash rich can bid for FRL anything above Rs.17,000 Crore. This is a sure shot (solution) we get our money and who wins get FRL. This is the one and only solution”.
The Supreme Court was considering the Plea filed by FRL requesting to dismiss the letters of the lender’s threatening to commence Insolvency Proceedings against the company with scenario of its Rs.24,713 crore deal with the Reliance Retail that has been impeded due to Litigation and Arbitration proceedings.
Senior Advocate Harish Salve appearing for the FRL highlighted the point in the Affidavit filed by the Consortium stated that an Interim Arbitration Award would not obstruct the lender’s way and the loan accounts of FRL have become non performing assets.
He has sought 10 days time period to speak to the banks.
Advocate Dwivedi has put forth the difficulties of the lender’s and stated that, “There are two private contracts – one is ours with depositor’s interest, which has a public interest. Here, there is a loan of Rs.7,000 crore and if pushed for a year, it will be Rs.25,000 crore and we don’t know if Amazon gets it or Reliance gets it, so there is uncertainty”.
He continued and urged the Supreme Court to allow both Amazon and Reliance to bid for the Group.
After observing all the submissions and Arguments Chief Justice of India NV Ramana stated that, “The matter has been remanded back and now before the single judge bench [of Delhi High Court]. There are two issues, one is Writ under Article 32 by Future, its for FRL, banks and Amazon to decide. Regarding continuation of Interim proceedings before NCLT, please file an Affidavit”.
The Bench stated that it will eventually pass Orders on NCLT matter and Adjourned the Case.