Future Retail moves Delhi HC, challenges SIAC’s decision

According to a regulatory filing on Wednesday, the promoters of Future Group and Future Coupons Pvt. Ltd has also urged the High Court to set aside the SIAC order.

Last week, SIAC rejected Future Group’s appeal to vacate the interim stay Reliance Transactions rendered in October 2020.

In its appeal, the company opposed the arbitration court’s observation that Future Retail was in no way a party to the agreement between Amazon and Future Coupons, as the promoters of the group had not signed any agreement with Amazon. .

Amazon invested ₹1,400 crore in Future Coupons, which holds about 10% stake in Future Retail.

According to an order of the Mumbai bench of the National Company Law Tribunal (NCLT), Future Retail, in its appeal on Tuesday, has also urged the court to allow the company to hold a meeting of shareholders and creditors.

On September 28, the NCLT allowed the Kishor Biyani-led group companies to hold a meeting of shareholders and creditors for approval to sell all their assets to Reliance Retail Ventures Ltd.

Last week, Amazon filed an interim application in the Supreme Court to restrain Future Retail from holding a meeting of shareholders and creditors on the Reliance Retail deal.

On 29 August 2020, debt-ridden Future Group announced the sale of its retail and wholesale assets to subsidiaries of Reliance Industries Limited. ₹24,713 crores.

Soon after, Amazon approached SIAC on the grounds that Future Coupons, its investment agreement with another Biyani firm, prevented Future Retail from selling its assets to Reliance.

A SIAC emergency order halted the sale process, triggering a court battle between Amazon and Future over the legality of implementing the SIAC order.

Thereafter, the Singapore Tribunal heard both the sides and a final order is expected soon.

In August, the top court had upheld the Singapore emergency arbitrator’s order suspending Mukesh Ambani-led Reliance Industries’ acquisition of Future Group’s retail assets.

The Supreme Court Bench of Justices Rohinton Fali Nariman and BR Gavai ruled that the order dated 25 October 2020 by SIAC is enforceable under Section 17(2) of the Arbitration Act of India.

Reliance Retail Ventures Limited (RRVL), the retail arm of Reliance Industries, recently extended the long-stop date to complete its work. ₹24,713 crore deal with Future Group till March 31 next year in view of the long-standing legal battle with Amazon. Earlier, RRVL had extended the long stop deadline from March 31 to September 30.

Online retail giant Amazon is competing with rivals including Walmart-led Flipkart and Reliance Industries to gain an edge in India’s fast-growing retail e-commerce space.