NCLT can now issue directions to convene meetings of shareholders: Future Retail

A SC division bench had stayed, till February 26, the order passed by the single judge of Delhi High Court, which, on February 2, had directed all parties including regulatory authorities to maintain status quo (i.e. to stop the proceedings in the Scheme of Arrangement pending before NCLT, Mumbai) till the pronouncement of reasoned order of the single judge.

Future Retail said on Monday that the Supreme Court has specifically ruled that the proceedings before the NCLT will be allowed to go on but will not culminate in any final order of sanction of the scheme.

"Accordingly, the NCLT can now issue directions to convene meetings of shareholders and creditors of the applicant companies, including Future Retail Limited, to consider the scheme," the company said in a regulatory filing.

The hearing was held on Monday before Justices Rohinton Fali Nariman and B.R. Gavai in the matter of the special leave petition filed by Amazon before the Supreme Court.

The apex court issued a notice and set a schedule for filing of pleadings in the special leave petition filed by Amazon.Com NV Investment Holdings LLC challenging the order dated February 9, 2021 passed by a division bench of Delhi High Court.

The division bench had stayed, till February 26, the order passed by the single judge of Delhi High Court, which, on February 2, had directed all parties including regulatory authorities to maintain status quo (i.e. to stop the proceedings in the Scheme of Arrangement pending before NCLT, Mumbai) till the pronouncement of reasoned order of the single judge.

"The Supreme Court has further specifically ruled that the proceedings before the NCLT will be allowed to go on but will not culminate in any final order of sanction of the scheme. 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," it said.


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