Future Retail Moves Delhi High Court Seeking Relief From SIAC Stay

Future Retail moved the Delhi High Court seeking relief against the October 21 order of the Singapore International Arbitration Centre (SIAC), which rejected the company's plea to lift the stay on the company's Rs 24,713 crore deal with Reliance Retail. It held that Future Retail was a party to the ongoing arbitration dispute between Amazon and Future Group pertaining to the sale of its assets to Reliance Retail. 

The stay was seen as a huge respite to the e-commerce platform Amazon. 

In its filing to the Bombay Stock Exchange on Wednesday, it said that the company is seeking relief from the Delhi High Court to stay and set aside the 'impugned order' of the SIAC. Alternatively, allowing Future Retail to conduct shareholders and creditors meeting as directed by the National Company Law Tribunal on September 28, this year. 

Future Retail added, "As per information available to us, FCPL and the Promoters have also filed an appeal before the Hon’ble Delhi High Court seeking to set aside the said Impugned Order dated 21 October 2021."

The three-party battle predates to August 2020 when Reliance Retail announced its Rs 24,713 crore deal with Future Group to acquire its retail and wholesale business along with logistics and warehousing business. Amazon opposed the deal which being an investor in Future Coupons Private Limited was also a shareholder in Future Retail. The e-commerce platform had agreed to purchase a 49 per cent stake in Future Coupons, an unlisted company of the Future Group. 

Future Coupons hold a 7.3 per cent stake in Future Retail via convertible warrants and holds the right to acquire the company after three to ten years. 

Following the Reliance-Future deal, Amazon reached out to the SIAC alleging violation of a partnership contract with the asset sale to Reliance Retail.