Among individual stocks, Future Retail slipped 9 per cent to Rs 70.55 on the BSE in intra-day trade. At 10:19 am, it was trading 5 per cent lower at Rs 73.75, as compared to 0.27 per cent decline in the S&P BSE Sensex.
“The company has received a communication from the Singapore International Arbitration Centre (SIAC), enclosing an interim order of the Emergency Arbitrator in the arbitration proceedings under shareholders’ agreement between Amazon, Future Coupons Private Limited and the promoter group,” Future Retail (FRL) said in exchange filing.
FRL is examining the communication and the order. It may be noted that FRL is not a party to the agreement under which Amazon has invoked arbitration proceedings, it said.
FRL has been legally advised that actions taken by the FRL/its board, which are in full compliance of the relevant agreements and eminently in the interest of all stakeholders cannot be held back in arbitration proceedings initiated under an agreement to which FRL is not a party.
As per the advice received by FRL, all relevant agreements are governed by Indian Law and provisions of Indian Arbitration Act for all intents and purposes and this matter raises several fundamental jurisdictional issues which go to the root of the matter. Accordingly, this order will have to be tested under the provisions of Indian Arbitration Act in an appropriate forum.
Among other Future Group stocks, Future Consumer (Rs 7.54), Future Enterprises (Rs 9.53) and Future Supply Chain Solutions (Rs 91.20) were locked in 5 per cent lower circuit on the BSE.
RIL, too, was trading 2 per cent lower at Rs 2,070 on the BSE. Reliance Retail Ventures Limited (RRVL) informed the stock exchange that it has entered into the transaction for acquisition of assets and business of Future Retail under proper legal advice and the rights and obligations are fully enforceable under Indian Law.
RRVL intends to enforce its rights and complete the transaction in terms of the scheme and agreement with Future group without any delay, it said. RRVL is a subsidiary of Reliance Industries Limited, and holding company of all the retail companies under the RIL Group.
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