- The court has mentioned that according to law, the statutory body has the right to take their own call over this issue.
- Amazon argued that Ambani’s retail group is listed among the top 30 negative firms with which Future cannot do any deal.
In the midst of ongoing skirmish between Jeff Bezos’s Amazon and Kishore Biyani’s Future Group, the Delhi High Court has declined to repudiate Amazon from writing to the higher authorities. It implies that the court has rejected the petition of Future Group to put an end to Amazon’s continuous interference in the deal with Reliance Retail.
Nonetheless, the court has mentioned that according to law, the statutory body has the right to take their own call over this issue. It further added that Future’s approving the transaction with Reliance is also justified. The court has taken this decision after the Singapore International Arbitration Centre (SIAC) tried to restrict Future Retail from making a deal with Reliance.
A couple of weeks back, Future filed a lawsuit in the Delhi high court against Amazon to prevent the latter from misusing the Singapore interim order and forcibly interfering the Rs 24,713-crore deal between Future and Reliance. Amazon has won the interim injunction passed by the Singapore International Arbitration Centre (SIAC), but it is filled with numerous barriers if it takes legal recourse to implement SIAC’s order in India.
Earlier, while filing the lawsuit, Future highlighted that Amazon has no legal right to interfere between its transaction or deal with Reliance. But, the American e-commerce giant holds 9.82 per cent stake in Future Coupons and using the arbitration it argued that Ambani’s retail group is listed among the top 30 negative firms with which Future cannot do any deal.
While hearing the plea, the court said, “prima facie the representation of Amazon based on the plea that the resolution dated 29th August 2020 of FRL is void and that on conflation of the FCPL SHA and FRL SHA, the ‘control’ that is sought to be asserted by Amazon on FRL is not permitted under the FEMA FDI Rules, without the governmental approvals, this Court finds that FRL has made out a prima facie case in its favour for grant of interim injunction. Amazon has also based its representation on the alleged breach of FCPL SHA and FRL SHA, as also the directions in the EA order,” ad per Bar and Bench.
The court concluded that it is now up to the statutory authorities to call for the right decision, which earlier, it was a matter of trial to see Amazon’s claim outweighed Future Group’s accusation or not.