HC rejects Future’s plea to stay Singapore arbitrator’s order: Report

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 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.

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. 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.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Source link