Due to a decision of the Supreme Court, an important deal of Rs 24731 crore between Future Retail and Reliance Retail has been stuck again. In its decision, the Supreme Court, while hearing the petition filed against this deal, has ruled in favor of the e-commerce sector giant Amazon. The Supreme Court has put the decision on the Emergency Arbitrator (EA) award of Singapore on hold, meaning that this decision will be effective here as well.
After this decision of the court, Reliance’s shares fell by 2 percent today and its shares fell at a price of Rs 2087. Shares of Future Retail fell by 10 percent and it fell at a price of Rs 52.55. Future Enterprises and Future Lifestyle also fell up to 10 per cent.
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Foreign EA’s decision will be applicable in India
A bench of Justice RF Nariman said that the decision of an EA of any other country will be applicable here also under the Indian Arbitration and Conciliation Act. According to the Supreme Court, it does not matter that the term ‘EA’ is not used in the Arbitration Law in India. According to the court, the EA order is an order under section 17(1) and can be enforced under section 17(2) of the Arbitration and Conciliation Act. The legal battle between Amazon.com NV Investment Holdings LLC and FRL (Future Retail Limited) over the deal with Reliance has been going on for a long time and Amazon has argued in the Supreme Court that the EA award is valid and can be implemented in India. Is.
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this is the whole matter
Amazon invested in Future Coupons in August 2019. Under this deal, Amazon also got the right to buy a stake in Future Retail within three to 10 years. Last year in August 2020, Kishore Biyani’s Future Group inked a deal worth Rs 24713 crore with Mukesh Ambani-owned Reliance to sell its retail, wholesale, logistics and warehousing units. After this, the giant e-commerce company Amazon filed a petition in the Singapore International Arbitration Court against Future Group regarding the deal with Reliance.
According to Amazon, Future Group has violated the terms of its contract by dealing with Reliance. The Arbitration Court of Singapore ruled in favor of Amazon, on the basis of which it appealed to the Delhi High Court. A single bench in the Delhi High Court ruled in favor of Amazon, but after the two-judge bench did not decide in its favor, Amazon filed a petition in the Supreme Court, on which the decision has come today.