SIAC had granted interim relief to Amazon last month. The arbitration proceedings will start soon. The interim order is valid for 90 days.
Kishore Biyani-led Future Group’s demand that Future Retail not be considered for arbitration in its dispute with Amazon, has been rejected by the Court of Singapore International Arbitration Centre (SIAC).
The international body has said the arbitration process will proceed with both Future Retail and Future Coupons, as per sources.
In October, a single-judge bench of V K Rajah had given an interim arbitration award, barring Future Retail Ltd (FRL) from taking any step to dispose of or encumber its assets or issuing any securities to secure any funding from a restricted party.
Future Retail Limited (FRL) had approached SIAC with the plea that the arbitration proceedings were part of a contract between Amazon and Future Coupons, to which FRL is not a party. The company had pleaded that it be excluded from being a party on account of jurisdiction objection.
However media reports suggest that the Court of SIAC has decided that the arbitration process shall proceed and accordingly, a tribunal will be constituted in this matter.
SIAC had granted interim relief to Amazon last month. The arbitration proceedings will start soon. The interim order is valid for 90 days.
In August last year, Amazon bought 49 per cent in one of Kishore Biyani-led Future Group's unlisted firms - Future Coupons Ltd (FCL) with the right to buy into the listed flagship FRL after a few years, if the government were to undo its bar on foreign ownership of multi-brand retailers.
FRL ran into a severe cash crunch soon after the nationwide lockdown imposed to curb the coronavirus outbreak. It cut a deal with Reliance Industries Ltd (RIL) to sell assets for Rs.24,713 crore.
Then, Amazon dragged Future to arbitration at SIAC claiming that its contract with the unlisted FCL barred a transaction with a number of persons and companies, including Reliance.
Amazon has also written to markets regulator Sebi and stock exchanges, urging them to take into consideration the Singapore arbitrator's interim judgement that has put on hold the Rs.24,713 crore deal between Future group and RIL while reviewing the proposed transaction.
Last week, Competition Commission of India (CCI) cleared the deal.
FRL has already moved Delhi High Court seeking 'reliefs' against Amazon from interfering with its RIL deal and alleged that the e-commerce giant was misusing an interim order passed by a Singapore arbitrator. Last week, the Delhi High Court reserved its order on the application.
(With Agency Inputs)
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 "Future Retail-Amazon dispute: Future Group to face arbitration process")
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