Future Retail on Saturday approached the Delhi High Court seeking redress against SIAC’s suspension order in ₹24,713 cr-deal with Reliance Industries.
Firm Future Group has claimed that Amazon is “misusing” the interim order approved by an emergency arbitrator at the Singapore International Arbitration Center (SIAC) on October 25, 2020.
“Please note that the Company has filed the necessary claim with the Honorable High Court of Delhi on November 7, 2020 in connection with the pursuit of necessary reparations against Amazon.com NV Investment Holdings LLC (” Amazon “) not to interferes with the Transaction by misuse of an Interim Order dated October 25, 2020 issued by an emergency arbitrator, appointed by the Singapore International Arbitration Center (SIAC). The Interim Order dated October 25, 2020 is approved in an arbitration proceeding initiated by Amazon, among others, against the Company under an Agreement, in which the Company is not a party to the Agreement.
“The Company, among other things, has converted all entities in the lawsuit that were parties to the arbitration proceedings, this includes the promoters of the Company. It should be noted that the reparations requested in the lawsuit are only against Amazon,” the company said. in a bag presentation.
Amazon had moved the Singapore International Arbitration Center (SIAC) arguing that Future Group had breached its contract. Amazon, in 2019, had bought a 49 percent stake in one of Future’s unlisted companies, Future Coupons Ltd, with the right to buy from the flagship Future Retail after a period of between 3 and 10 years. Future Coupons owns a 7.3 percent stake in Future Retail.
On October 25, SIAC approved an interim award in favor of Amazon, with a single judge from VK Rajah prohibiting Future Retail from taking any steps to divest or encumber its assets or issue securities to secure any funding from a restricted party. Amazon wrote to market regulator Sebi and the stock exchanges, urging them to consider the Singapore arbitrator’s interim ruling.
On November 1, Future Retail Ltd (FRL) submitted a submission to the exchanges saying that the Singapore arbitrator’s interim order against its agreement with RIL “is not binding” and that any attempt to enforce it will be “resisted”.
Questioning the validity of the order, FRL said the order was approved in an arbitration proceeding initiated by Amazon by invoking an arbitration clause in a contract to which it is not a party.
“The EA (Emergency Arbitrator) order is not enforceable under the provisions of the Arbitration and Conciliation Act 1996 and is not binding on FRL. Any attempt by Amazon to enforce the EA Order will be resisted by FRL to the fullest possible measure. available under Indian law. FRL is also in the process of taking appropriate legal action to protect its rights, “the filing said.
Under SIAC’s interim order, a three-member arbitration panel must be established within 90 days with a judge appointed by Future and Amazon along with a neutral third judge.
In Sunday’s filing, FRL argued that it had been informed that “an Emergency Arbitrator has no legal status” under Part I of the India Arbitration and Conciliation Act 1996 and hence the procedures they are “null and Coram non judice”.
The fact that the EA order was approved by an authority without jurisdiction is a “nullity under Indian law,” he had said.
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