The Supreme Court, on Monday, stayed the ongoing proceedings before the Delhi High Court in regards to the amalgamation of Future Retail Ltd with Reliance Retail. The bench posted the matter for hearing on May 4 and directed that all pleadings be completed in the matter.
Amazon had moved the apex court on April 8 challenging the Delhi High Court’s division bench order that had vacated a stay on Kishore Biyani-led Future Group proceeding with its Rs 24,713 crore asset sale to Reliance Industries. Prior to this, FRL had moved the division bench of the high court against its single judge’s order upholding Singapore’s Emergency Arbitrator’s (EA) order restraining FRL from going ahead with its Rs 24,713 crore deal with Reliance Retail to sell its business.
As such, the division bench had granted Future a reprieve from a March 18 single-judge order that restrained it from taking any steps to sell assets to Reliance. A petition by the US based e-commerce giant has sought a stay on the March 22 order of the division bench, terming it “illegal”, “random”, “inequitable and unfair”.
The international e-commerce giant and Future have been locked in a bitter legal tussle after the US firm dragged Future Group to arbitration at SIAC in October 2020, arguing that the latter had violated their contract by entering into the deal with rival Reliance. Amazon had invested in Future Coupons in August 2019 with an option of buying into the flagship Future Retail after a period of three to 10 years. The Future Group had however, moved the National Company Law Tribunal (NCLT) seeking regulatory approvals to the Rs 24,713 crore deal with Reliance.
Amazon had filed a plea before the high court (single judge) for enforcement of the October 25, 2020 EA award by the Singapore International Arbitration Centre (SIAC) restraining FRL, from going ahead with its Rs 24,713 crore deal with Reliance Retail. The high court division bench, however, said that it was staying the single judge order as FRL was not a party to the share subscription agreement (SSA) between Amazon and Future Coupons Pvt Ltd (FCPL) and the US e-commerce giant was not a party to the deal between FRL and Reliance Retail.
Furthermore, the bench had said it was of the prima facie view that the shareholding agreement between FRL and FCPL, the SSA between FCPL and Amazon, and the deal between FRL and Reliance Retail “are different” and “therefore, the group of companies doctrine cannot be invoked”.