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Sunday, August 01, 2021

Amazon moves HC division Bench against observations in Future case

The case is likely to be listed for hearing this week, one of the sources said.

Written by Aashish Aryan | New Delhi |
January 12, 2021 3:16:29 am
On August 29, Future Retail announced that it would “sell by way of a slump sale the retail and wholesale business” of its supermarket chain Big Bazaar.

Amazon has moved the division Bench of the Delhi High Court against a single-judge December 21 judgment, challenging an observation that Future Retail had on two counts been able to prove that there was “prima facie case of tortious interference by Amazon”, two sources in the know of the development told The Indian Express. The case is likely to be listed for hearing this week, one of the sources said.

In its December 21 judgment, a single-judge bench of the High Court had refused to restrain Amazon from writing to the Securities and Exchange Board of India (Sebi), Competition Commission of India (CCI) or other statutory bodies against the Future Retail Limited- Reliance Retail and Lifestyle Limited deal.

The single-judge Bench had, in its judgment, also noted that Amazon’s assertion that Future Retail’s August 29, 2020 resolution was void and that it had control over Future Retail since it had a stake in Future Coupons would “fall foul of the freedom of FRL (Future Retail) and Reliance (Reliance Retail) to enter into the transaction thereby causing loss to both FRL and Reliance which would be a civil wrong actionable by both FRL and Reliance in case they suffer any loss.”

On August 29, Future Retail announced that it would “sell by way of a slump sale the retail and wholesale business” of its supermarket chain Big Bazaar, premium food supply unit Foodhall, and fashion and clothes supermart Brand Factory’s retail and wholesale units, to Reliance Retail, a unit of Reliance Industries.

The deal had, however, run into legal trouble with Amazon, which had last year signed a Rs 2,000-crore deal with Future Retail under which the e-commerce major would acquire 49 per cent stake in Future Coupons, the promoter firm.

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