Future Retail restrained by Indian court from going ahead with Reliance real
Global Economy
The Delhi High Court Thursday upheld the Singapore International Arbitration Centre's order restraining Future Retail from going ahead with its Rs24,713 crore deal with Reliance Retail to sell its business, which was challenged by US-based e-commence giant Amazon.
Justice JR Midha directed Kishore Biyani-led Future Retail not to take further action on the deal and held that the group wilfully violated the Singapore arbitrator's order, reports the NDTV.
The high court directed the Future Group and its directors to deposit Rs20 lakh cost in Prime Minister's Relief Fund for providing Covid-19 vaccines to financially disadvantaged senior citizens.
The court directed the presence of Biyani and others before it on 28 April as also attachment of their properties.
The high court asked them to show cause as to why they be not detained for three months under civil prison for violating the Singapore arbitrator's order.
Responding to the ruling, Future Retail said in a statement, "Today's Delhi High Court order of single judge has no bearing on the status quo of the case since it is already in the Supreme Court, where the next hearing is expected to be in the last week of April 2021."
"As per Hon'ble Supreme Court's interim order dated 22nd Feb, 2021, NCLT [National Company Law Tribunal] is allowed to continue its proceedings but same shall not culminate in any final order of the sanction of the scheme," it added.
The high court's order came on Amazon's plea requesting enforcement of the award by the Singapore tribunal on 25 October, 2020, restraining Future Retail from going ahead with the deal with Reliance Retail.
Amazon, in its interim plea, has sought to restrain FRL from taking any steps to complete the transaction with entities that are a part of the Mukesh Dhirubhai Ambani Group.
Future Group and Amazon have been locked in a battle after the US-based company took Future Retail into the emergency arbitration over alleged breach of a contract between them.
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