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Future-Reliance deal: Amazon files caveat against Biyani's firm in Delhi HC

Future-Reliance deal: Amazon filed the caveat to ensure that Future does not get an interim ruling from the high court in their favour with regards to the emergency international arbitration award

twitter-logoBusinessToday.In | November 4, 2020 | Updated 13:07 IST
Future-Reliance deal: Amazon files caveat against Biyani’s firm in Delhi HC
Future-Reliance deal: Amazon too files caveat

In the latest turn in the Amazon-Future feud, the US giant has also filed a caveat in the Delhi High Court preempting Kishore Biyani's next move. Future Group has also filed its own caveat. Amazon preempted Future's move to challenge the Singapore arbitration ruling that granted an interim stay on the Reliance-Future deal.

A caveat is a notice filed by a party informing the court that another party could file a lawsuit or application against them. The law requires the court to give a fair hearing to the caveator before deciding the matter brought in front of it.

Amazon filed the caveat before the Biyani-led Future Group could approach the court against the US-based giant, helmed by Jeff Bezos, as mentioned in a report in Times of India. People in the know told the daily that the US giant filed the caveat to ensure that Future does not get an interim ruling from the high court in their favour with regards to the emergency international arbitration award. The daily stated that both the parties have submitted caveats and not filed a case officially.

Also read: Future Retail moves Delhi HC to check any Amazon plea over RIL deal

Future Group said in a Sunday exchange filing that it is considering all legal courses available to it to protect its rights.

While Mukesh Ambani's Reliance Industries is not a party to any of the proceedings, it had stated soon after the Singapore court order that it will ensure the deal is followed through without any delay. The interim order pronounced by the Singapore court is valid for 90 days. A final order is expected before the deadline expires.

Amazon bought a 49 per cent stake in Future Coupons Ltd, which owns a 7.3 per cent stake in Future Retail. In August, Mukesh Ambani's Reliance decided to buy retail, wholesale and some other businesses of the Future Group in a deal valued at $3.38 billion, including debt. However, Amazon's investment came with contractual rights that include a right of first refusal and a non-compete-like pact that the US e-tailer has invoked to halt the Future-Reliance deal.

Also read: Arbitration order staying Rs 24,000 crore RIL deal not 'enforceable, binding': Future Retail

Also read: Amazon tells SEBI Future Retail is misleading shareholders

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