Supreme Court stays put Reliance-Future deal
In the case of merger of Future Retail Limited (FRL) with Reliance Retail, worth over Rs 20,000 crore, American e-commerce company Amazon got a big victory. The Supreme Court has held that the emergency award is enforceable in Indian law. While giving an important decision in the matter, the Supreme Court has upheld the order of the Single Bench of the Delhi High Court. With this decision, the court has put a stay on Future Group’s deal with Reliance Retail for the time being. The Supreme Court has given this decision on Amazon’s petition against the Reliance-Future Group deal.
The Supreme Court had to decide whether the Emergency Arbitrator has the legal status of an Arbital Tribunal. Can it be implemented in India? Is Future Group’s appeal maintainable before the Division Bench of Delhi High Court? Amazon challenged Future Group’s $3.4 billion deal with Reliance Industries.
The Singapore-based Emergency Arbitrator (EA) in favor of Amazon had directed Future Group to stay the Rs multi crore deal with Reliance Retail, which was earlier challenged in the Delhi High Court. Amazon has told the Supreme Court that the Singapore Emergency Tribunal’s (EA) decision restraining FRL from the merger deal with Reliance Retail is “valid” and should be implemented.
The court was to decide whether the decision of the Emergency Tribunal (EA) of Singapore to stay the deal was valid and enforceable under Indian law. The petition against Future Group and Reliance deal, the Supreme Court had reserved the decision on Thursday.
A bench of Justice RF Nariman had reserved the verdict after hearing both the sides. In the year 2019, Amazon gave $19.20 million to the Future Group. Amazon had made this payment for a 49 per cent stake in the Gift Vouchers unit of the Future Group. Amazon had opposed the deal and said that Future Group could not sell its business to Reliance.
