Amazon and FRL are embroiled in a legal fight over FRL's Rs 24,713 crore merger deal with Reliance Retail
New Delhi: The Division Bench of Delhi High Court on Wednesday agreed to urgently hear on Wednesday itself an appeal of Future Group challenging single bench order.
Senior Lawyer Dayan Krishnan, who appeared for Future Group, mentioned the matter before the bench of Justice DN Patel and Justice Jyoti Singh stating that it is a "do or die" situation for them as the Singapore arbitration tribunal hearing on Amazon's case starts at 2:30 pm.
The Division bench agreed to hear the matter today at 2:15 pm. However, Senior Advocate Rajiv Nayyar appeared for Amazon and opposed the matter and said the appeal is not maintainable.
The single bench of Justice Amit Bansal on Tuesday had dismissed the Future Group's petitions that sought direction to Arbitral Tribunal to immediately decide its application seeking termination of arbitral proceedings of Amazon matter.
Justice Amit Bansal on Monday reserved the order on Future Group's petition challenging two orders of Arbitral Tribunal and sought to issue direction to Arbitral Tribunal to immediately and forthwith hear, dispose of and pass order on the Termination Application of Amazon matter before the arbitration tribunal in Singapore.
In the petition filed by Future Retail Limited, the petitioner has preferred against the orders dated 29 December 2021 and 30 December 2021 passed by the Arbitral Tribunal in SIAC Arbitration Case No. 960 of 2020 (captioned Amazon.com NV Investment Holdings LLC v. Future Coupons Private Limited) ("Arbitration Proceedings").
Future Retail Limited has sought to issue an appropriate order or direction declaring that the continuation of the Arbitration Proceedings in the SIAC Arbitration Case is contrary to law.
The petition also sought to issue an appropriate order or direction quashing and setting aside the Impugned Orders dated December 29, 2021, and December 30, 2021, passed by the Arbitral Tribunal and to issue an appropriate order or direction directing the Arbitral Tribunal to immediately and forthwith hear, dispose of and pass order on the Termination Application.
Amazon and FRL are embroiled in a legal fight over FRL's Rs 24,713 crore merger deal with Reliance Retail. Amazon has a 49 per cent stake in FCPL, which in turn owns a 9.82 per cent stake in FRL. Amazon's contention is that it has invested Rs 1,431 crore in FCPL on the clear understanding that FRL would be the sole vehicle for its retail business and its retail assets would not be alienated without consent and never to a Restricted Person.
FRL, on the other hand, has objected to the enforcement of the EA award saying that it is not an order under Section 17(1) of the Arbitration and Conciliation Act and hence not enforceable in India. However, later the top court said the EA award is enforceable in India.
FRL has contended that the Rs 24,731 crore deal was very important to save its 25,000 employees. It had said that as per the deal, Reliance will not only take over FRL's shops but also all its liabilities.