New Delhi (ILNS): The Kishore Biyani-led Future Group has filed a Caveat petition in Delhi High Court, apprehending a move by Amazon. The petition says: “No decision of any kind should be given on any kind of petition filed by Amazon.”
The Future-Amazon fracas hit the roof after Amazon got an interim order in its favor on October 25 from an international arbitration forum in Singapore to block the Future Group deal with Reliance.
That put in doubt the sale of all retail businesses owned by the Future Group to Mukesh Ambani’s Reliance Retail Ventures Ltd for a consideration of Rs 24,713 crore.
Amazon’s (who are in direct competition in the retail space with Reliance) argument is that its 49 per cent stake in Future Retail’s promoter firm FCPL in August last year empowers it to have the first strike at acquiring the entire business of Future.
Also, after a period of three to 10 years, Amazon has the right to buy a stake in the group’s flagship company Future Retail. FCPL holds a 7.3 percent stake in Future Retail.
The arbiters in Singapore agreed to Amazon’s contention.
The Future caveat petition also says: In this context, the information should be given to Future Retail Limited under Section 148A of the Civil Procedure Code. “The company said that it has also sent a copy of the Caveat petition to Amazon. The letter to Amazon says: “You (Amazon) will notify the company 48 hours before filing any kind of petition under Section 9 of the Arbitration and Conciliation Act.”
-India Legal Bureau