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Saturday, November 28, 2020

Future Retail moves HC, seeks to stop Amazon from ‘misusing’ SIAC order

The Indian Express had on October 27 reported that Future Retail was likely to move such a plea, seeking the court’s directions on going ahead with the deal.

By: ENS Economic Bureau | New Delhi | November 8, 2020 1:14:34 am
Future Retail group is led by Kishore Biyani

Kishore Biyani-led Future Retail on Saturday said it had moved a plea in the Delhi High Court seeking appropriate relief against Amazon.com’s NV Investment Holdings to stop the latter from interfering in its deal with Reliance Industries Limited’s (RIL) Reliance Retail Ventures Limited (RRVL).

In its letter to the Department of Corporate Services of the Bombay Stock Exchange (BSE), the listing department of the National Stock Exchange as well as the Singapore Exchange Securities Trading Limited, Future Retail said that the application had been moved before the high court so as to prevent Amazon from “misusing” the interim order passed by the Singapore International Arbitration Centre (SIAC).

“The interim order dated 25th October, 2020 is passed in an arbitration proceeding initiated by Amazon inter-alia against the company under an agreement, wherein the company is not a party to the agreement. The company has inter-alia made all entities parties to the suit which were parties to the arbitration proceedings, this includes the promoters of the company. It may be noted that the reliefs sought in the suit are only against Amazon,” Future Retail said in its disclosure to the exchanges.

The Indian Express had on October 27 reported that Future Retail was likely to move such a plea, seeking the court’s directions on going ahead with the deal. Earlier that week, the SIAC had, on a plea moved by Amazon asked Future Retail, Future Coupons and the parent company Future Group “not to take any steps in furtherance to the Board Resolution of August 29”.

Amazon had objected to the Future-Reliance Retail deal, and subsequently instituted arbitration against Future Coupons, Future Retail and Future Group. However, since a formal tribunal has not been appointed yet, an emergency arbitrator of the SIAC had barred Future Retail from going ahead with the deal. In his order, the emergency arbitrator had also said that Future should not move any other tribunals or courts in India or anywhere else. On August 29, Future Retail had 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.

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