Companies

Confidentiality clause latest flashpoint in Amazon-Future Group dispute

Updated : October 28, 2020 03:45 PM IST

A confidentiality clause in the agreement between Amazon and Future Group may be the latest flashpoint in the ongoing dispute.

As per the agreement between Amazon and Kishore Biyani's Future Group companies, there is a confidentiality clause which says, "No party or person involved in any way in the creation, coordination or operation of the arbitration of any dispute may disclose the existence, contents or results of the dispute or any arbitration conducted under this agreement in relation to that dispute, in each case subject to those disclosures permitted by Section 24 (Confidentiality) and save as required in order to enforce the arbitration agreement and, or any award made pursuant to this agreement."

Following the arbitration award in Singapore, there have been some reports which said that the order of the court was seen or reviewed. The Singapore court order is not yet in the public domain. It is to be seen if this amounts to a violation of the confidentiality clause.

In an earlier filing, Future Retail had said, "Future Retail Limited (FRL) has received a communication from the SIAC, enclosing an interim order of the Emergency Arbitrator in the arbitration proceedings under the shareholders' agreement between Amazon, Future Coupons Private Limited and the promoter group. FRL is examining the communication and the order."

"It may be noted that FRL is not a party to the agreement under which Amazon has invoked arbitration proceedings. FRL has been legally advised that actions taken by the FRL/its board, which are in full compliance of the relevant agreements and eminently in the interest of all the stakeholders, cannot be held back in arbitration proceedings initiated under an agreement to which FRL is not a party," it said.

"As per the advice received by FRL, all relevant agreements are governed by Indian Law and provisions of Indian Arbitration Act for all intents and purposes and this matter raises several fundamental jurisdictional issues which go to the root of the matter", it said.

"Accordingly, this order will have to be tested under the provisions of Indian Arbitration Act in an appropriate forum. In any enforcement proceedings, FRL would take appropriate steps to ensure that the proposed transaction will proceed unhindered without any delay", Future Retail added.

Confidentiality clause latest flashpoint in Amazon-Future Group dispute

You May Also Like

Carlyle Group in advanced stages to acquire Granules India for around $1 billion, say sources

Govt caps surge pricing by cab aggregators at 1.5 times of base fare, issues other guidelines

RBI has set precedence in LVB bond write-off, will hurt other banks: Report

Trending on CNBC-TV18

recommended for you