Let Amazon, Reliance bid for Future Retail for over ₹17,000 crore: Consortium of lenders to Supreme Court

The consortium of banks seeking initiation of insolvency proceedings against Future Retail Limited (FRL) on Thursday urged the Supreme Court to allow Amazon and Reliance to bid for the company [Future Retail Limited v. Reserve Bank of India & Ors]..Appearing for the consortium, Senior Advocate Rakesh Dwivedi told the Bench of Chief Justice of India NV Ramana and Justices AS Bopanna and Hima Kohli,"Amazon and Reliance who are cash rich can bid for FRL anything above ₹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 Court was hearing a plea by FRL seeking to quash the lenders' letters threatening to initiate insolvency proceedings against the company, in the backdrop of its ₹24,713 crore deal with Reliance Retail that has been stalled owing to litigation and arbitration before various fora.On the last date of hearing, the Bench had called for an affidavit to be filed by the consortium..Appearing for FRL, Senior Advocate Harish Salve pointed out that the affidavit stated that an interim arbitral award would not come in the lenders' way, and that the loan accounts of FRL have become non-performing assets (NPAs). He sought for ten days' time to "speak to the banks.".Highlighting the concerns of the lenders, Dwivedi submitted,"There are two private contracts - one is ours with depositors' interest, which has a public interest. Here, there is a loan of ₹7,000 crore and if pushed for a year, it will be ₹25,000 crore and we don't know if Amazon gets it or Reliance gets it, so there is uncertainty."He said that if Reliance wins, then Future will get ₹20,000 crore as a whole group, and FRL will not have a separate share. "Our suggestion is entire asset of FRL which we are entitled for us to sell, let it be open for bid by Amazon and Reliance.".Salve then hinted that FRL was more inclined to making a deal with Reliance than with Amazon."Amazon can't deposit a single rupee since there is a bar. ₹7,000 crore does not satisfy any one. Reliance undertaking will satisfy everyone and 35,000 jobs will be saved. No shops closed...we have someone who wants to pay the money and who wants to receive the money and Amazon has just needlessly jumped into all of this.".Appearing for Amazon, Senior Advocate Gopal Subramanium said,"We have no problem in engaging with banks. If an injunction succeeds, then the system will be in place. We are prepared to discuss the matter with lenders. Amazon made an offer. This is subject matter of arbitration.".At this point, CJI Ramana said,"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."Subramanium then argued that an interim arrangement which displaces the finding of an arbitral tribunal can only be made when an award of the tribunal is challenged..The Court eventually said that it would pass orders on the NCLT issue and adjourned the matter.