MY KOLKATA EDUGRAPH
ADVERTISEMENT
regular-article-logo Friday, 10 May 2024

Amazon moves Supreme Court and National Company Law Appellate Tribunal

It continues to oppose the Rs 24,173-crore transaction between the Future Group and Reliance Retail

Our Bureau Mumbai Published 10.01.22, 02:08 AM
Both the appeals made by Amazon may be heard in the coming days.

Both the appeals made by Amazon may be heard in the coming days. File Picture

Amazon has filed two fresh petitions in separate forums as it continues to oppose the Rs 24,173-crore transaction between the Future group and Reliance Retail.

The US retail giant has filed an appeal in the Supreme Court against an interim order of the Delhi high court last week that had stayed the arbitration proceedings between the two warring parties.

ADVERTISEMENT

Amazon has also moved the National Company Law Appellate Tribunal (NCLAT) against the December order of the Competition Commission of India (CCI) that suspended its 2019 deal with Future Coupons Pvt Ltd (FCPL).

While both the appeals may be heard in the coming days, a Reuters report said its plea against the CCI order was filed late on Saturday night.

Last week, a division bench of the Delhi high court stayed the arbitration proceedings of Amazon with the Future group at the Singapore arbitration tribunal, following an appeal made by Future Retail Ltd (FRL) and FCPL.

The division bench also stayed an earlier order of the single judge bench which had dismissed petitions moved by the two group firms — pleading the court direct the SIAC to first hear their application of termination of the arbitration proceedings following the CCI order.

Last Thursday, the bench of Chief Justice D.N. Patel and Justice Jyoti Singh said there was a prima facie case in favour of the appellants FRL and FCPL and if a stay is not granted, it will cause an irreparable loss to them, after which it posted the matter for hearing on February 1. The high court also issued a notice to Amazon.com NV Investment Holdings LLC on the appeals filed by FRL and FCPL challenging the single judge's order.

In 2019, Amazon had acquired a 49 per cent stake in FCPL a promoter entity of the Kishore Biyani group, which gave it an indirect stake in FRL. Amazon has alleged that the Future group had violated the terms of their contract by entering into a deal with Reliance Retail.

Last month, the CCI while suspending the Amazon-FCPL deal, said there was a “deliberate design” on the part of Amazon to suppress the actual scope and purpose of its proposal in 2019. The CCI had said that its approval for the transaction which was given in November 2019, will remain in “abeyance’’. It had said that Amazon will have to make another application within a period of 60 days from the receipt of the order.

FRL had also approached the SIAC to stay the arbitration proceedings based on the order given by the CCI.

However, the SIAC declined to stay the proceedings which was scheduled from January 5-8. Due to the legal dispute between the Future group and Amazon, Reliance has extended the timeline to complete the deal to March 31, 2022.

A tale of two petitions

Petition 1

Filed before the Supreme Court

What is it about:

Appeal against interim order of division bench of Delhi HC which had stayed the arbitration proceedings in Singapore

What is status: Appeal to be heard in SC. Delhi HC will hear case on February 1

Petition 2

Filed before the NCLAT

What is it about: Amazon moves against December CCI order that revoked the deal between Amazon and Future Coupons

What is status: NCLAT hearing expected soon.

CCI has asked Amazon to file fresh application within 2 months of receiving order

Follow us on:
ADVERTISEMENT