Prior to this interim order, the Court of Arbitration prohibited Future Retail Limited from issuing securities for any kind of transfer of the company’s assets, or for acquiring funds from the other party under an agreement. But the Competition Commission of India has approved the agreement of Reliance Retail and Future Group.
Future Retail Ltd’s petition to separate itself from the arbitration process between Amazon and Future Coupons has been rejected by the Singapore arbitration court. V.K. The single judge bench of Raja gave an interim order in the case.
Under the interim order, the court (Arbitration Court) has prohibited Future Retail Limited from issuing securities for any kind of transfer of the company’s assets, or for obtaining funds from the other party under an agreement.
There is relief in India
Significantly, the Competition Commission of India has given the green signal to the agreement between Reliance Retail and Future Group, giving a shock to Amazon in this matter only last week. Amazon is fighting a legal battle against the Future-Reliance deal. The matter between Future Group and Amazon is also under consideration in Delhi High Court. The Delhi High Court has reserved its verdict on Future Group’s plea to stop interfering in the Amazon deal.
A news agency quoted sources as saying that the Singapore International Arbitration Center court (SIAC) has also ordered to proceed with the arbitration process.
What to say about future retail
According to sources, Future Retail had told SIAC that the arbitral decision process initiated by Amazon is the basis of an agreement in which Future Retail is not a party. In such a situation, the company had filed a petition with the SIAC to separate itself from the arbitration process. But the SIAC has decided to continue the arbitration process and set up a tribunal in the case accordingly.
What is the matter
The case relates to the purchase of 49 per cent stake in Future Group company Future Coupons Ltd by Amazon in August last year and the right to buy the first stake in the group’s flagship company Future Retail. Future Coupons also has a stake in Future Retail.
The controversy started when in August this year, the Future Group entered into an agreement to sell its retail, warehousing and logistics business to Reliance Industries for about Rs 24,713 crore. Amazon is opposing the deal and a Singapore arbitration court ruled in its favor.