Amazon can continue to pursue arbitration in Singapore tribunal with the Delhi High Court dismissing Future Retail’s petition, which sought to override the American company’s legal challenge to the merger deal between Reliance Industries and the Kishore Biyani-led company
Future Retail had filed two petitions which challenged the orders passed by the Singapore International Arbitration Centre (SIAC).
Justice Amit Bansal on Tuesday said, “Both the petitions have been dismissed, the order will be uploaded shortly.”
Amazon has filed for arbitration in SIAC, bocking the Kishore Biyani-led company to sell its assets for ₹24,000-crore to Reliance Industries.
Future Group’s plea to the Delhi High Court was dependent on the Competition Commission of India suspended the 2019 deal between Amazon and Future Coupons. It prayed that since the deal between Amazon and Future Coupons was in abeyance, the arbitration did not hold value. Future Group had made a similar plea to the SIAC. The tribunal, too, rejected its plea.
Future Retail’s independent directors had earlier written to the CCI to cancel the approval for the 2019 deal between Amazon and Future Coupons because Amazon had “concealed facts” at the time of seeking approval for its investment. This deal, in which Amazon had invested ₹1,431 crore in Future Coupons Private Limited, is at the centre of the ongoing dispute between Amazon and Future Retail.
Under the agreement, Amazon had barred Future group from getting into any equity sale deal with Reliance.
Since the Future-Reliance deal was announced in 2020, Amazon used the 2019 agreement to block the deal. The American company has also won the arbitral award based on this agreement.
Meanwhile, Care Ratings downgraded Future Retail’s non-convertible debentures, long-term, and short-term bank facilities to (default) ‘D’ grade. The Future Retail missed the last date for payment of ₹3,494.56 crore to banks and other lenders that were a part of the One Time Resolution Plan.
In a separate filing, the company said, “Due to ongoing litigations with Amazon.com NV Investment Holdings LLC, the company was not able to complete the planned monetisation of the Specified Business as contemplated in OTR Plan to discharge the aforesaid Obligations to Banks / Lenders, on Due Date. As discussed with the Banks / Lenders, the company would be co-operating for completing the monetisation of the Specified Business within next 30 days as per directions of the banks to resolve the current situation.”