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Future vs Amazon: Kishore Biyani's firm to challenge Delhi HC order on deal with Reliance

In a big relief to Amazon, single bench court of JR Midha on Tuesday directed Future Group and its official to maintain status quo on deal with Mukesh Ambani's retail giant. Court says prima facie, it's of view the SIAC verdict on Future-RIL deal was enforceable in India

twitter-logoBusinessToday.In | February 4, 2021 | Updated 00:32 IST
Future vs Amazon: Kishore Biyani's firm to challenge Delhi HC order on deal with Reliance
Future group may file appeal against Delhi HC order today

Future Group has decided to challenge Delhi High Court order, which yesterday blocked the Rs 24,713 crore Future Group-RIL deal after Amazon raised objections. The appeal against the order is set to be filed later today, Reuters said citing sources, who declined to be identified. Future Group, however, is yet to come up with any statement on the issue.

Future Group is caught between a legal battle between the two biggest companies of the world as they fight it out to gain bigger dominance over India's vast retail sector, say experts.

Also read: 'Dog in a manger': Kishore Biyani's description of Amazon

In a big relief to Amazon, the single bench court of JR Midha on Tuesday directed the Future Group and its official to maintain status quo on the deal with Mukesh Ambani's retail giant. The court was hearing the e-comm giant's plea in the court on an emergency award passed by the Singapore International Arbitration Centre (SIAC), which restrained Future from selling retail assets to Reliance Industries.

"Respondents (FRL) are directed to maintain status quo as on today at 4:49 PM till pronouncement of the reserved order," the court said.

The court said prima facie, it's of the view the SIAC verdict on the Future-RIL deal was enforceable in India. On Monday, the court asked both the parties if they were ready to resolve issues, and that the proceedings in the case would continue as scheduled. The court said the matter can be referred to two retired judges of the Supreme Court if both parties agree to resolve their issues.

In its ugly legal spat with Future Group, Amazon in its Delhi HC plea asked the court to detain the group's founder Kishore Biyani in a civil prison, along with other directors for "deliberately" not following the arbitration court's order.

In August 2019, Amazon bought a 49 per cent stake in one of Future Group's unlisted companies - Future Coupons Ltd (FCL) - along with the right to acquire the listed flagship FRL after a few years, if the Centre were to revoke its ban on foreign ownership of multi-brand retailers. Amazon says the deal between Future and RIL violates the contract it signed with Kishore Biyani's firm.

Future Group is caught between a legal battle between the two biggest companies of the world as they fight it out to gain bigger dominance over India's vast retail sector, say experts.

Also read: ED investigating Amazon for FDI violations in Future Retail deal

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