Thread by @LawBeatInd

#SupremeCourt to shortly hear plea by #futuregroup against classifying the company as #NPA . The writ has been filed against @RBI

Salve: The petition is filed in the following circumstances of desperation. @RBI has come up with a scheme in 2020 for those who were hit by #Covid_19 . We entered into an agreement , it required certain payments. Assets had to be sold. We could not do so

Salve: Banks met on 15th December 2022

Court looks for the documents to be referred to.

Salve: The consortium called for a meeting because we had certain obligations for payments, we explained it to them. In the meanwhile @amazon has also been writing letters. One of the assets we have is small format stores

Salve: We could not do so because of the injunction. The banks expressed their displeasure. #futuregroup On 31st December we told the banks to take over and sell it or get us past this. On 1st January, the banks were told to set up asset sale commission

Salve: On 5th January, we get event of default notices #futuregroup . It says currently event of defaults exists . The first step is default , next step is NPA. Then section 7 of IBC will kick in. On the other hand the banks have said they will not allow any movement of funds

Salve: If it becomes NPA all this will become infructuous. We have filed an additional affidavit. We need time to get the house in order. We are going to get 27k crores. Once this is done, we will repay everything. Our process is in a very initial staged

#futuregroup

Salve: If things go uninterrupted we will be there by June, then it will be heard, after that we may have an away by October or so #futuregroup

Salve: Either we go into the bankruptcy route

CJI: The amazon offered money?

Salve: They will ask a fund called Samara, they asked us to send our retails assets @amazon . They want to get it on the cheap.

CJI: How are you going to resolve this?

Salve: If the banks could give us time till September, everybody will be paid if the deal succeeds. If @amazon succeeds the the 7000 crores is going to get us nowhere

CJI: Why dont we expedite the proceedings before the tribunal?

Salve: Its starting tomorrow.

Salve: If your lordships sees the 3 parts, the step upto 15 is purely procedural. I dont think we will get to 15 soon. It is all procedural. By June/July we will know the outcomes. If @amazon succeeds we will go into bankruptcy. The promoters will get SFIO notice.

Rohatgi: The whole thing will fall apart, we have nothing against the banks. If they want to sell the small shops, they may do so. If we go to NPA everything will fail @amazon will not get anything

Dwivedi for banks: This WP is not maintainable at all. It arises out of contractual deal. Amongst the 27 banks there are 10 private and 3 foreign banks against whom 32 petition is not maintainable. The loans were all pre-2019, this has nothing to do.

CJI: File a short affidavit

Dwivedi: There should be no interim order milords. Then there is a default. They admit that they are bankruptcy. If WP is permitted, it will open a pandora’s box. @amazon #futuregroup

Dwivedi: We have nothing to do with any of this. They are saying if @amazon gets it, it goes to bankruptcy. They have already defaulted in 2020, they have again defaulted now.

CJI: File an affidavit! We will give 2 days time. We have to be realistic here neither of the parties

Will get any benefit- CJI

Order:
Let the bank file an affidavit, we will continue.