Amazon got a leg-up from the Supreme Court on Friday in its case against Future-Reliance. The top court upheld the plea of the e-commerce giant against the Rs 24,731-crore merger of Future Retail Ltd (FRL) with Reliance Retail.
“The EA Order is an order within section 17 (1) and can be enforced under Section 17(2) of the Arbitration and Conciliation Act,” an SC bench headed by Justice RF Nariman said. Amazon was represented by Gopal Subramanium and FRL by Harish Salve.
The top court said that Singapore’s Emergency Arbitrator Award, which restrained FRL from going ahead with its merger deal with Reliance Retail, is enforceable in Indian law. Amazon and FRL are engaged in a legal battle over the deal and the US-based firm.
The apex court, which started hearing the final arguments from July 20, had earlier restrained the National Company Law Tribunal (NCLT) from passing any order related to regulatory approvals for the combine.
Following the Supreme Court ruling, the Future Groups stocks took a hit, tumbling by up to 9.96%. Aming the stocks that took the hit are that of Future Enterprises, Future Retail and Future Supply Chain
The case history:
August 2019: Amazon enters into an agreement with Future Coupons, a Future Group company, to buy 49% stake for Rs 1,500cr.
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2020
August 29: Future Retail board approves deal with Reliance Retail (RR) by which RR would buy Future Group’s retail, wholesale and logistics business for Rs 24,713 cr
October 9: Amazon challenges this deal in Singapore International Arbitration Centre
October 25: Singapore Emergency Arbitrator stays the deal in an interim award
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November 7: Future Retail moves Delhi High Court against Singapore order
February 2: Single-judge bench of Delhi High Court orders status quo on Future Retail-Reliance Group deal, meaning that Singapore order was valid
February 3: Future Retail contests this order before a two-judge bench
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February 8: Two-judge bench lifts single bench’s status quo order on FRL-Reliance retail deal
Feb 11: Amazon moves the Supreme Court
Aug 6: Supreme Court rules in favour of Amazon, upholding the Singapore arbitrator order.