Future Retail allows NCLT to convene shareholders’ meetings

Future Retail granted National Company Law Tribunal (NCLT) permission to issue directions to convene meetings of shareholders and creditors of applicant companies, including it, to consider the Rs 24,713-crore deal with Reliance Retail following an order by the Supreme Court. Earlier in the day, the apex court had allowed the NCLT, Mumbai to continue with the proceedings but asked not to pass a final order on the amalgamation of Future Retail Ltd (FRL) with Reliance Retail, as it agreed to hear Amazon's plea against the Delhi High Court verdict that stayed a single judge directive to maintain status quo on the deal.

Accordingly, the NCLT can now issue directions to convene the meetings of shareholders and creditors of the applicant companies including FRL to consider the scheme. The Delhi High Court on February 8 had stayed its single judge direction to FRL and various statutory authorities to maintain status quo on the mega deal. The interim direction was passed on FRL's appeal challenging the February 2 order of the single judge.

The high court division bench had also declined Amazon's request to keep its order in abeyance for a week so that it can explore appropriate remedies.