Future Retail has moved Delhi High Court (HC), seeking a stay on an interim order passed by the Singapore International Arbitration Centre (SIAC) on October 21.
An emergency arbitrator granted an interim award in favour of Amazon. The order rejected Future Retail's plea to lift the stay on the company's Rs 24,713 crore deal with Reliance Retail. It held that Future Retail was a party to the ongoing arbitration dispute between Amazon and Future Group pertaining to the sale of its assets to Reliance Retail.
Future Retail is seeking HC nod to proceed with seeking consent of shareholders, creditors to restructure group companies to enable retail asset sale.
Future and Amazon have been engaged in a legal tussle since October 2020 with Amazon approaching the Singapore International Arbitration Centre objecting to a deal between Future Retail and Reliance Retail in 2019.
Amazon is trying to block the sale of Future Group's retail, wholesale, and logistics business to Reliance Industries Ltd for Rs 24,713 crore for allegedly breaking contracts.
Amazon has argued the 2019 deal it had with a Future unit contained clauses prohibiting the group from selling its retail assets to anyone on a "restricted persons" list that included Reliance.
After the Singapore arbitrator put the deal on hold last year in an interim decision, Future argued it should be excluded from arbitration because Amazon had initiated it incorrectly under a contract it signed with another Future Group company.
Future is India's second-largest retailer with over 1,700 stores and has warned that failure to strike the deal with Reliance could push it into liquidation.
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(Edited by : Anshul)
First Published: IST