The Delhi High Court on Friday rejected a plea by Future Retail to stay a decision by a Singapore arbitration panel that has kept the sale of Future’s retail assets to Reliance Industries in limbo, said MoneyControl.com. The court will hear the plea on January 4.
The Singapore arbitration panel had also rejected Future Retail’s request to be excluded from the arbitration proceedings as it is party to the dispute between Amazon and Future Group, the report said.
Subsequently, Future Group had moved the Delhi High Court seeking a stay on the interim order as well as permission to proceed with shareholders’ and creditors meetings for its planned asset sale to Reliance Retail. The court, however, said it is unable to deliver a verdict given the Supreme Court’s direction on September 9 to not pass any “final verdict” in the matter, the report said.
Amazon and Future Group are embroiled in legal battles since the latter entered into an agreement with Reliance Retail to sell its retail assets for Rs 24,713 crore in 2020. The deal, however, has faced several roadblocks due to Amazon’s objection to it, the report said. Amazon contests the deal claiming that a prior agreement with Future Group entitled the company to pick up a stake in Future Retail at a later date.
Amazon in 2018 had bought a 49 per cent stake in unlisted Future Coupons Private Limited. Subsequently, Amazon had moved to the Singaporearbitration panel to block the deal. The panel passed a verdict blocking the deal last year, the report said.
In August, the Supreme Court had ruled upholding the validity of Singapore arbitration panel’s award in India. In September, Amazon had approached the Delhi High Court seeking implementation of the award. However, the Supreme Court intervened, on Future Group’s appeal, and ordered a stay on the proceedings of the ongoing Amazon-Future Retail case before the Delhi High Court, the report said.