On November 7, Future Retail Ltd moved the Delhi High Court against Amazon for interfering in its ₹ 24,713 crores deal with Reliance Industries by misusing an arbitration order from the Singapore International Arbitration Centre (SIAC). Kishore Biyani led Future Group and the American conglomerate, Amazon was already on the opposite sides of a legal battle. In the latest update, the Future Group has sought relief against Amazon for interfering with their deal with Reliance.
In August this year, Future made a deal with Reliance to sell their retail assets. The deal also included their wholesale, logistics, and warehousing units.
Amazon claimed that the Future’s new deal with Reliance violates a deal they made with them earlier. Furthermore, the SIAC passed an interim award in favor of Amazon. This barred FRL from moving forward with their deal.
Future Retail Ltd filed a suit to the Department of Corporate Services (CRD). The filing said, “The Company has filed necessary suit in the Hon’ble Delhi High Court on 7th November 2020, in relation to seeking necessary reliefs against Amazon.com NV Investment Holdings LLC (“Amazon”) from interfering with the Transaction by misusing an Interim Order dated 25th October 2020, issued by an Emergency Arbitrator (EA), appointed by the Singapore International Arbitration Centre (SIAC).”
Amazon managed to obtain an interim stay on the deal from the Singapore arbitrator. This put the Future Group-Amazon deal worth ₹ 24,713 on hold. It said that the “arbitration proceeding initiated by Amazon inter-alia against the Company under an Agreement, wherein the Company is not a party to the Agreement.”
Future Group has sought reliefs only against Amazon
Additionally, it also said that the Company has inter-alia made all entities party to the suit which was parties to the arbitration proceedings. It also noted that the reliefs sought in the suit are only against Amazon.
FRL added that they have sought relief in the suit only against Amazon. Sources indicate the FRL petition is expected to come for a hearing on Tuesday. Both Future Group and Amazon have filed caveats before the Delhi High Court. They requested that they be heard if a plea is filed by the other party.
Future Retail Ltd has also said that it would take appropriate actions under applicable laws to protect theirs and their stakeholders’ interests.
Future Group said that they don’t believe the SIAC’s interim order passed by the EA will hold under Indian Laws. They have asserted that an Emergency Arbitrator has no legal status under Part I of the Indian Arbitration and Conciliation Act, 1996, and therefore, the proceedings are “void and Coram non-judice.”