Thread by @LawBeatInd

#SupremeCourtofIndia will today hear plea by Future Group seeking direction of the court to restrain a consortium of banks from declaring it a Non Performing Assets. On the last date of hearing the court had asked the Banks to file a short affidavit

CJI: The banks have to say something. We have not filed any affidavit.

Dwivedi: We filed it last night.

CJI: Its not there

Salve: They have also said that the interim orders should not stand in their way. They say they have begun classifying as FRL as NPA. They need 8 or 9000 crores. Let me try talking to the banks, if the court can give me time

Dwivedi: These petitions are in the realm of pure financial contracts, the courts cannot interfere in it in Article 32. There are 10 private and 3 foreign banks so there are no fundamental rights. The loans were granted between 2015-2020 before emergency order and the @amazon lit

Dwivedi: These loans the default had been committed in 2020, they were restructured on the request of future. It was done on an agreed plan #futuregroup they have to abide by certain timelines. @amazon

CJI: The maintainability is another issue. Mr.Salve wants sometime, we will see your counter and see.

Dwivedi: There are 2 private contracts between Future and @amazon , future and #RelianceIndustries . The third is ours, it has public interest. We have a loan of 17k crores

Dwivedi: We are looking at an uncertain litigation in order to forego what is certain today. If @amazon wins 7k crores will comes in. Our loan alone is 17k crores. In any case we go to IBC. If #RelianceIndustries wins future will get 27k crores for whole groups

Dwivedi: My suggestion is the entire assets of FRL can be subjected to an open bid between @amazon and #RelianceIndustries . 17k crore is my loan due. Whoever is higher, let them take, this way we get our money. Whoever wins gets the company

Salve: I fully agree with him. @amazon cannot deposit even one rupee for a reason that its an American company. If the deal with #RelianceIndustries goes through every rupee will be paid and jobs will be saved. I can suggest 2 things, one is if #SupremeCourtofIndia directs HC

To hear the appeal, if the HC hold there is no arbitration agreement my scheme goes.- Salve

Salve: Primary question is the arbitration agreement. IF that can be heard in 4 or 5 weeks. We have to find someway that banks are not let high and dry.

Salve: If those appeals are heard, there will be one solution. I am only requesting if the court can do that today, and if 2 weeks are given I will ask my clients to speak to banks

Court deliberating

Gopal Subramaniam for @amazon : My client has no objection to engage with the banks. We are prepared to discuss the matter with lenders. We made an offer. I am ready to discuss

CJI: Bank issue is a separate issue. All of you are in a position to discuss. The second issue

Is about the maintainability of arbitration. Which was remanded. What is your stand?- CJI

Subraminium: There is a partial award rejecting Mr.Salve’s award. It can only be challenged in a final award. How can he argue in a 37 appeal? The single judge has to examine !

CJI: I want to clarity from you.

Salve: We will argue that before single judge, we will say who knows more law. Let us not use adjectives like “preposterous."

Subramaniam: The only procedure for challenging such an award is to challenge the final award.

Salve: There are 2 things that is preposterous one is to use language like this in this court!

CJI: Please listen, we have passed an order yesterday. It is for you to whatever they want. We won’t interfere.

Salve: I am only aksking the court to hear it early

CJI: There are 2 issues one is the 32 petition, we will not pass any order in it. It is for the 3 of you to do it. So far as the other issue as to continuation of proceedings before NCLT

Subramanium: The order of the emergency arbitrator could have been appealed. There is no ap

Appeal against this order. The only order is the order of October 2020. interim orders of this court it is always terminated by the final order. Any interim relief which has the tendency to interfere with the injunction of arbitral tribunal be left with HC.

CJI: Now you know the situation, one side there is an injunction of SIAC, one side there is an IBC proceeding. I dont think any proceeding will take place before 1 or 2 years. Subject to what you think, if we allow the proceedings before NCLT to go on what is your loss?

Subramanium: Before the NCLT proceedings were initiated many actions were done in derogation of the tribunal. I can understand if my friend said no action will be taken. Through out the period, we have had steps against order of tribunal. What is the protection for @amazon

Salve: @amazon only reads order in favour of them.

CJI: It is natural.

Salve: your lordships have vacated the orders which said we have violated orders. All this is rhetoric.

Aspi Chinoy: In effect what your lordships to permit the NCLT proceedings is derogation award

CJI: I want to clarify, so far as this portion of the relief we have not passed order because there is a 32 petition.

Chinoy: Only the enforcement order has been challenged not the injunction order. He is using collatoral proceedings to vacate injunction. We will be remediless

Ranjit Kumar: May I just add something?

CJI: You started go ahead, where is the question of permission?

Kumar: In the time sheet, he has reached stage 8 of 15 in violation injunction of arbitral tribunal .

Salve: I hope there are no more counsels appearing for @amazon .

Ranjit Kumar take objection to this.

Salve: The enforcement of the first interim order stands dismissed. As I read the court’s judgment the enforcement was dismissed, that is now merged with tribunals order

Salve: The tribunal’s order is in appeal before the HC now. The court may direct that no final order shall be made at step 15.

Rohatgi: The agreement which had the blessings of CCI has been withdrawn, there is no enforceable agreement in India so the arbitration clause perishes

Subramanium: Under Section 16 an arbitration agreement is severable, the commission’s order is just in abeyance. The order of the tribunal without being challenged in an appeal has been evaporated? I am surprised. I am leaving it to you. If I win by way of arbitration

I am beset with Salve saying there is no injunction. Where do I stand? The order is there, yet we are being told to ignore this validity.

CJI: We will pass order. Alright.