38.6c New Delhi, India, Monday, May 27, 2024

Supreme Court Reserves Verdict On Amazon's Plea Against Future-Reliance Reliance Deal

By Nargis Bano      03 August, 2021 01:56 PM      0 Comments
Supreme Court Reserves Verdict On Amazon's Plea Against Future-Reliance Reliance Deal

The Supreme Court reserved its decision in the Amazon-Future-Reliance case on Thursday(July 29,2021), deciding whether Singapore's Emergency Arbitrator Award preventing Future Retail Ltd (FRL) from proceeding with its merger deal with Reliance Retail is valid under Indian law and whether it can be enforced.

After hearing arguments from all parties in the case, a bench led by Justice Rohinton F Nariman reserved its verdict.

Amazon.com NV Investment Holdings LLC, based in the United States, and FRL are locked in a legal battle over FRL's $24.713 billion merger with Reliance Retail.

Previously, the bench stayed further proceedings in the Amazon-Future-Reliance case before a single judge and a division bench of the Delhi High Court.

The Supreme Court was hearing an appeal from e-commerce giant Amazon, which was challenging the Delhi High Court"s decision to stay an order upholding an emergency arbitrator award preventing Future Retail Limited (FRL) from proceeding with its 24,731 crore assets sale deal with Reliance Retail.

On March 22, 2021 , a division bench of High Court Chief Justice DN Patel and Justice Jasmeet Singh stayed a March 18 order of Justice JR Midha ordering the attachment of the assets of Future Coupons Private Limited (FCPL), FRL, Kishore Biyani, and ten other promoters.

Amazon has sought enforcement of an emergency arbitrator's (EA) order preventing FRL from transferring its retail assets at the Singapore International Arbitration Centre (SIAC).

Amazon owns 49% of FCPL, which owns 9.82% of FRL. Amazon claims that it invested 1,431 crore in FCPL with the clear understanding that FRL would be the sole vehicle for its retail business and that its retail assets would not be alienated without consent and would never be sold to a restricted person.

FRL, on the other hand, has objected to the EA award being enforced, claiming that it is not an order under Section 17(1) of the Arbitration and Conciliation Act and thus not enforceable in India.

FRL has claimed that the 24,731 crore deal was critical to the survival of its 25,000 employees. According to the agreement, Reliance will take over not only FRL's stores but also all of its liabilities.

Share this article:

Leave a feedback about this

Trending Judiciary
Courts this Week: Law Street Journal's Weekly Round-Up of SC & HCs [May 20 - May 25]

Get the latest updates from the Supreme Court of India and the High Courts ! Here’s a round up of the week's top legal stories in a quick, easy-to-read summary.

26 May, 2024 11:25 AM
Trending Executive
Arvind Kejriwal moves Supreme Court to extend interim bail by 1 week for medical tests

Arvind Kejriwal seeks Supreme Court extension of interim bail by one week for medical tests in Delhi excise policy case amid ongoing ED investigation.

27 May, 2024 11:24 AM


Trending Business
Agarwal Family Plans to Sell Haldiram for Rs. 71,000 Crores as Next Generation Steps Back

The Agarwal family plans to sell Haldiram, valued at Rs. 71,000 crores, with a Blackstone-led consortium bidding. This marks India's largest private equity buyout.

21 May, 2024 03:32 PM
Trending Crime, Police And Law
13 Year old boy booked for impregnating 15 year old sister, after watching porn together

Minor siblings watch porn together brother rapes and impregnates sister. Police official probing the matter shared that the siblings tried to have sex for the first time in Dec 2023, but failed.

21 May, 2024 03:54 PM
Trending Judiciary
“Replacing colonial-era codes,” new criminal laws to come into effect on July 1

“Replacing colonial-era codes,” the new criminal laws to come into effect on July 1. However, Section 106(2) of the Bharatiya Nyaya Sanhita (BNS) has been put on hold. Read the full article to know why.

21 May, 2024 04:57 PM
Trending Judiciary
Offences Under Section 354D Ipc And Section 506 Ipc Are Personal To Parties: Rules Supreme Court

The Supreme Court quashed stalking and criminal intimidation charges to preserve marital ties, invoking Article 142, deeming the offences personal to the parties involved.

21 May, 2024 05:40 PM


Join Group

Signup for Our Newsletter

Get Exclusive access to members only content by email