Future Enterprises has secured the nod from the Bombay High Court to offload its stake in a general insurance joint venture with Generali.

The deal was challenged by IDBI Trusteeship, which represents a group of foreign bondholders who had subscribed to Future Enterprises’ entities that had defaulted.

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In January this year, Future Enterprises signed a €145m deal to sell a 25% stake in Future Generali India Insurance (FGII) to Generali, an Italian insurance major.

At the time, Generali also reached a deal to buy a stake of around 16% of Industrial Investment Trust Limited (IITL) in Future Generali India Life (FGIL) for approximately €26m.

As per Reuters’ earlier report, the bondholders had rights that required Future Enterprises to refrain from diluting its holding in a general insurance joint venture.

After IDBI Trusteeship’s appeal, a city civil court stayed the deal till 10 March 2022, but the civil court’s order has been set aside by the Bombay High Court.

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“After hearing the Counsels for parties at length, the Bombay High Court was pleased to allow the Appeal and set aside the ex-parte order,” Future Enterprises said in an exchange filing.

The Bombay High Court’s orders come as a relief for Future Group, which is stuck in a legal tussle with tech giant Amazon, over the sale of its retail operations to Reliance Industries.

Other than the Generali JV, Future Group’s investments areas such as supply chain, logistics and textile manufacturing are also held by Future Enterprises.

Proceeds from the sale in the insurance JV will be used to support Future Group’s retail operations that have taken a severe hit during the Covid-19 pandemic.