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New Delhi14 hours ago
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- National Law Company Law Tribunal to continue its proceedings
- Amazon has reached the Supreme Court against the decision of Delhi High Court
The ongoing legal battle between American e-commerce company Amazon and Future Retail Ltd has now reached the Supreme Court. On Amazon’s appeal, the Supreme Court on Monday issued a notice to Future Retail and Reliance Industries Limited. In this notice, both companies have been asked to present their case within three weeks. Also, the Supreme Court has put a stay on the further process of the deal between Reliance-Future.
NCLT will not be able to give final decision
The Supreme Court has asked the National Company Law Tribunal (NCLT) to continue proceedings on the deal between Reliance Industries and Future Retail. However, the Supreme Court has said that the NCLT will not be able to take a final decision in the matter. Reliance Industries and Future Group signed a deal of Rs 24,713 crore in August. Amazon is objecting to this deal.
Amazon reached the Supreme Court against the High Court’s order
On the petition of Amazon, a single bench of the Delhi High Court ordered Future Group to maintain status quo in the deal with Reliance. Against this, the Future Group reached the double bench of the High Court. The Double Bench stayed the decision of the Single Bench, allowing Future Group to complete the deal with Reliance. In order to stay the order of the High Court’s double bench and seek interim relief, the Supreme Court of Amazon took refuge.
Amazon is seeking to stop the Reliance-Future Group deal
E-commerce company Amazon is trying to stop the deal between Reliance and Future Group. For this, Amazon has cited the deal between Future Coupons. Amazon argues that in a separate deal with Future Unit in 2019, there was a clause that Future Group cannot sell its retail assets to anyone on the list of “restricted individuals”, including Reliance.
Reliance-Future deal was done in August
Reliance Industries Limited (RIL) had announced the purchase of Kishore Biyani’s Future Group in August. The deal was done for Rs 24,713 crore. Under the deal, Future Group’s retail, wholesale, logistics and warehousing business will go to Reliance. Reliance Retail Ventures Ltd and Reliance Retail & Fashion Lifestyle Ltd have bought these businesses of Future Group. Reliance had signed the deal to expand the retail business in the country.
SEBI has approved the deal
The deal between Reliance and Future Group has been approved by the Securities and Exchange Board of India (SEBI). SEBI has approved this despite Amazon’s objection. Earlier, the Competition Commission of India (CCI) has also approved the deal. Recently, Kishore Biyani, founder and CEO of Future Group, said that the Reliance-Future Group deal would be completed in two months after SEBI approval. Kishore Biyani had said that both the hearing on the dispute with Amazon and the deal with Reliance will continue.
Singapore arbitration court has imposed a ban on the deal
Amazon had moved the Singapore arbitration court to protest against the Reliance-Future Group deal. The deal was stayed by Amazon’s sole arbitrator VK Raja on a petition by Amazon. However, the final decision has not been made yet. Now a three-member arbitration bench will take a final decision in the matter. The bench will nominate one member each from Future and Amazon. One member will be neutral.