The Future Group has challenged the Delhi high court order that banned the sale of its assets to Reliance Industries Ltd (RIL). The Delhi HC had banned the sale on objections retail giant Amazon.
Background
- The high court put a hold on Future Group’s the ₹24,713-crore retail deal with the Mukesh Ambani led Reliance Industries
- The court has ordered the Future Retail Ltd to maintain the status quo on the assets till the reverse order is pronounced.
- Competition Commission of India (CCI) had approved the Future-Reliance deal in November 2020.
- The Securities Exchange Board of India also gave its conditional nodto the deal in January 2021.
Why amazon filed the petition?
- The global retail giant Amazon had filed the petition recently in the Delhi HC.
- Amazon thorough the petition was seeking the detention of Future Group founders including the promoter Kishore Biyani.
- It has also asked for the seizure of their assets alleging that it was violating the tribunal order.
- Amazon maintains that the Future Group’s deal with Reliance Industries violates its investment agreement with Kishore Biyani’s firm. The agreement had barred the company from selling its assets to any specified entities including the reliance.
What does the court say?
The Singapore tribunal passed an interim order and favoured the Amazon in October 2020. The court order barred the Future Retail from taking any steps to sell or encumber its assets. The Delhi HC also said, the Singapore tribunal order of asking the Future Retail to not proceed with the deal is enforceable in India.
Delhi HC on the Issue
A single member bench of the Delhi high court had rejected Future Group’s plea in December 2021 that asked to restrain the Amazon from writing to regulatory authorities about the Singapore International Arbitration Centre (SIAC) arbitral order.
Singapore International Arbitration Centre (SIAC)
It is a not-for-profit international arbitration organisation which is based in Singapore. The organisation administers the arbitrations under its own rules of arbitration. The organisation was established on July 1, 1991. It is located at Maxwell Chambers. SIAC arbitration awards is enforceable in China, Australia, India, Hong Kong SAR, UK, Thailand, Indonesia, Jordan, USA and Vietnam.