Delhi HC stays order on Future Retail’s asset sale

‘Authorities cannot be restrained’

A security personnel walks past the Big Bazaar retail store in Mumbai June 9, 2012. Six months after the government backtracked on plans to allow foreign retail giants such as Wal-Mart Stores and Carrefour to form joint ventures, cash-starved domestic chains are selling assets, shutting stores, and scaling back expansion plans. Picture taken June 9, 2012. REUTERS/Vivek Prakash (INDIA - Tags: BUSINESS)

The Delhi High Court on Monday stayed its February 2 interim order to Future Retail Limited (FRL) and various statutory authorities to maintain status quo with regard to its assets sale deal with Reliance Retail.

The bench of Chief Justice D.N. Patel and Justice Jyoti Singh said that statutory authorities such as the National Company Law Tribunal, Competition Commission of India, and the SEBI, cannot be restrained from proceeding in accordance with the law with regard to the deal. The order came on an appeal filed by FRL challenging the February 2 interim order by a single judge bench directing status quo with regard to its assets sale deal with Reliance Retail.

The February 2 order came on the plea of Amazon seeking enforcement of an order of the emergency arbitrator at the Singapore International Arbitration Centre restraining FRL from taking any steps to transfer its retail assets.