The Delhi High Court refused on Monday to grant Kishore Biyani’s petition led Future Retail Ltd (FRL) for an interim injunction preventing Amazon from writing to SEBI, CCI and other authorities about the arbitration order against the asset sale. The court had reserved its verdict for today November 20.
On August 29 this year, Future Group announced the sale of its retail and wholesale business to Reliance Retail in a deal for Rs 24,713 crore. He announced plans to merge key group companies, including Future Retail, Future Lifestyle Fashions, Future Consumer, Future Supply Chains and Future Market Networks into FEL.
However, the Jeff Bezos-led company argued that a 2019 pact it signed with Future prevented the Indian company from selling its retail assets to certain parties. It had also won an interim award against the transaction between RIL and the Future group after a Singapore-based single-judge arbitration panel suspended the transaction.
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Future’s statement sought to prevent Amazon from interfering in the Reliance Retail-Future deal on the basis of an interim order approved by the Singapore International Arbitration Center (SIAC). Amazon had taken Future Retail to emergency arbitration for alleged breach of contract.
Meanwhile, the Competition Commission of India (ITC) approved the Future-Reliance deal in November saying: “The Commission approves the acquisition of Future Group’s retail, wholesale, logistics and warehousing businesses by Reliance Retail Ventures Limited and Reliance Retail and Fashion Lifestyle Limited “. The online giant had stated to the ICC that the so-called “court order” of the Emergency Arbitrator was binding on CCI and that CCI should stop processing the request and should not give its approval.
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It has been noted that Future Retail Limited (FRL) is a publicly traded company and section 230-234 of the Companies Act is a code in itself.
A company and its shareholders / creditors have the unrestricted right to participate in a settlement scheme. The only requirement is that the plan is approved with the necessary majority.
Future Enterprises Ltd reported a consolidated net loss of Rs 320.56 crore for the second quarter ending September 2020, due to lower income from operations. The company had posted a net profit of Rs 21.78 crore in the corresponding quarter a year ago.
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