New Delhi . Kishore Biyani-led Future Group on Monday indicated that it may challenge the Singapore arbitration court’s decision on India’s judicial forum to put an interim stay on the deal to sell the business to Reliance Industries. The arbitration court granted an interim stay against the Rs 24,713-crore deal on a petition filed by Amazon, a global retailing company. The group’s car bar, based on its earlier shareholder-agreement with Future Is opposed to selling to the retail company. Future Group indicated that it could challenge it in India so that its deal with Reliance would not be delayed and could be executed. Future Retail said in a statement on Monday that it was studying the interim order of the Singapore International Arbitration Center (SIAC). Future Retail Ltd, which operates retail stores like Big Bazaar and Easy Day Store etc. Has stated that it is not involved in the agreement on the basis of which Amazon has filed a case for arbitration decision. It has said that the deal with this Reliance cannot be stopped by seeking an arbitrator decision.
The company said in the statement, FRL: Future Retail Ltd.: is explained by law that the actions taken by FRL and its board of directors are in accordance with all relevant agreements and are solely in the interests of shareholders. These steps cannot be stopped by arbitration court action on the basis of any agreement which does not involve FRL. The statement said that all the agreements of the FRL are covered under Indian laws and the Indian Arbitration Act for all their intents and purposes. The company has said that many topics of jurisdiction have arisen from this case and these subjects go to the root of the case. The FRL has said that according to this order this order will be put to the test of the provisions of the Indian Arbitration Act at an appropriate stage. The company has said that it will take such appropriate steps in any action to enforce the law so that the proposed deal can be completed without hindrance and delay.
A Singapore arbitration court on Sunday tentatively stayed Future Group from selling its retail business to Reliance Industries Limited. Last year, Amazon agreed to buy a 49 percent stake in an unlisted company of the Future Group. Also, there was a condition that Amazon would have the right to buy the stake of Future Retail Limited after a period of three to 10 years. Meanwhile, debt-ridden Kishore Biyani’s group recently entered into an agreement to sell its retail store, wholesale and logistics business to Reliance Industries. Against this, Amazon has moved the court of arbitration. VK Raja, the sole arbitrator in the case of Amazon vs Future vs Reliance Industries, delivered an interim judgment in favor of Amazon. He asked Future Group to stop the deal for now. He said the deal cannot be reached until the arbitration court has reached a final decision in the matter. An Amazon spokesperson said, “We welcome the decision of the emergency arbitrator. We are grateful for this order, which gives all the requisite relief. We are committed to speedy resolution of the arbitration process. ”
Amazon believes that Future Group has breached the agreement with Reliance Industries. If the deal goes through, it would have helped Reliance almost double its presence in India’s retail sector. Reliance Retail Ventures Limited (RRVL) has stated that RRVL has initiated the process of acquiring the business and assets of Future Retail Limited which is completely under Indian law only after appropriate legal advice. Sources said that Amazon’s team was favored by Gopal Subramanian, Gaurav Banerjee, Amit Sibal and Alvin Yeo. Harish Salve stood in favor of Future Retail. The arbitration court passed the interim verdict after completing the preliminary hearing on 16 October.
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