InvestorQ : What is the latest that is happening on the Amazon / Future Group battlefront?
shrinidhi Rajan made post

What is the latest that is happening on the Amazon / Future Group battlefront?

1 year ago

There has been a lot of interesting developments in the Amazon case. Here is a quick item wise update on the case.

· Amazon, which has initiated the case against FRL, has urged Delhi High Court to declare the award by Singapore International Arbitration Centre SIAC to put the merger deal on hold, be declared as akin to a court order and made judicially enforceable.

· Arguing the case on behalf of Amazon, Advocate Gopal Subramanium argued that when the Parliament enacted the Arbitration and Conciliation Act it equated arbitral awards from recognized centres as being tantamount to orders of an Indian court. The SIAC order should fall in that category.

· Gopal Subramanium has also contended that the Future Group wanted the single bench to sit on judgement on the EA order, which is not permissible consider the Act already passed in parliament. Greater clarity will emerge on this point on 08 February.

· Meanwhile Future Group had argued in the court that Amazon was opposing the Rs.24,713 crore deal with Reliance only for the reason that Reliance Retail was already a tough competitor for Amazon and it was more a ploy to dominate the ecommerce space by keeping competition out.

· Future Retail has a lot at stake in the case because unless the order of the Delhi High Court was stayed, the proceedings before the National Company Law Tribunal or NCLT regarding the approval of the amalgamation scheme may have to be put on hold delaying the process further.

· The only contention that Amazon had was to restrain the deal on the strength of the EA order and prevent the RIL / FRL deal from going through. In fact, Amazon has also tried to restrain the Future Group from taking steps to complete the transaction with any of the entities that are part of the Ambani group|

· Meanwhile Justice Midha had directed all the interested parties concerned to maintain status quo in relation to merger deal as any steps right now would be in violation of the arbitral award. In fact, even when SEBI gave an approval for the deal, it made it very clear that disclosures of the legal status would have to be made.

In the meanwhile, in a different case, the Biyani brothers have approached the SAT to strike down a SEBI order restraining the Biyani brothers from accessing the capital markets for a period of one year.