Business Desk, AnyTV, New Delhi
Published by: Deepak Chaturvedi
Updated Wed, 23 Feb 2022 04:11 PM IST
Summary
SC Asks Amazon-Future Group To Urge NCLAT: In the ongoing dispute between Amazon and Future Group, the Supreme Court on Wednesday asked both the companies to first approach the NCLAT. A bench of Justice NV Ramanna fixed March 9 for hearing the matter. Let us tell you that on January 5, the Delhi High Court had stayed Amazon’s arbitration proceedings in the Singapore Tribunal.
In the ongoing dispute between Amazon and Future Group, the Supreme Court on Wednesday asked both the companies to first approach the National Company Law Appellate Tribunal. The Supreme Court has told Amazon that in order to decide on the Singapore arbitration proceedings, clarity from the NCLAT is required first. A bench of Justice NV Ramanna fixed March 9 for hearing the matter.
Ban on arbitration proceedings on January 5
Significantly, on January 5, the Delhi High Court had stayed Amazon’s arbitration proceedings in the Singapore Tribunal. The division bench had passed an interim order on the appeal of Future Group that the arbitration would remain suspended till the next hearing on February 1. The High Court had held that prima facie the case is in favor of Future Group by the Competition Commission of India’s (CCI) decision to stay the clearance granted to the deal and suppress the facts thereon. On Tuesday, a single bench of the High Court dismissed Future’s plea to terminate the arbitration in Singapore. Thereafter, the matter was appealed before the Division Bench.
What is the dispute between Amazon-Future
In 2019, Amazon bought 49 per cent stake in Future Coupons (the holding company of Future Group) for Rs 1,500 crore. Under this deal, Amazon also got the right to buy a stake in Future Retail within 3 to 10 years, but in 2020, Future Group announced the sale of its retail, wholesale and logistics business to Reliance Retail for Rs 24,713 crore. . This deal was objected by Amazon, after which this controversy arose. Significantly, a Competition Commission of India (CCI) order dated December 18 suspended the CCI’s approval for the Amazon-Future deal in 2019 for non-disclosure of relevant information by Amazon. CCI had also imposed a fine of Rs 202 crore on Amazon.
Expansion
In the ongoing dispute between Amazon and Future Group, the Supreme Court on Wednesday asked both the companies to first approach the National Company Law Appellate Tribunal. The Supreme Court has told Amazon that in order to decide on the Singapore arbitration proceedings, clarity from the NCLAT is required first. A bench of Justice NV Ramanna fixed March 9 for hearing the matter.
Ban on arbitration proceedings on January 5
Significantly, on January 5, the Delhi High Court had stayed Amazon’s arbitration proceedings in the Singapore Tribunal. The division bench had passed an interim order on the appeal of Future Group that the arbitration would remain suspended till the next hearing on February 1. The High Court had held that prima facie the case is in favor of Future Group by the Competition Commission of India’s (CCI) decision to stay the clearance granted to the deal and suppress the facts thereon. On Tuesday, a single bench of the High Court dismissed Future’s plea to terminate the arbitration in Singapore. Thereafter, the matter was appealed before the Division Bench.
What is the dispute between Amazon-Future
In 2019, Amazon bought 49 per cent stake in Future Coupons (the holding company of Future Group) for Rs 1,500 crore. Under this deal, Amazon also got the right to buy a stake in Future Retail within 3 to 10 years, but in 2020, Future Group announced the sale of its retail, wholesale and logistics business to Reliance Retail for Rs 24,713 crore. . This deal was objected by Amazon, after which this controversy arose. Significantly, a Competition Commission of India (CCI) order dated December 18 suspended the CCI’s approval for the Amazon-Future deal in 2019 for non-disclosure of relevant information by Amazon. CCI had also imposed a fine of Rs 202 crore on Amazon.