The Delhi High Court today refused to restrain Amazon from writing to statutory authorities, rejecting Future Group’s plea to prohibit the American giant from interfering in its deal with Reliance Retail.
However, the statutory authorities are free to take their own decision as per law, the court said. The high court termed Future Retail’s resolution approving the transaction with Reliance Retail also valid.
The order was pronounced in the suit filed by Future Retail Limited after an emergency arbitrator of the Singapore International Arbitration Centre (SIAC) retrained Future Group doing a transaction with Reliance Retail.
The judgement also held the award given by the emergency arbitrator as valid. Amazon, which owns a stake in Future Coupons which inturn holds 9.82 percent stake in Future Retail, had invoked arbitration on grounds that Reliance featured in the negative list of 30 companies with which Future Group could not transact.
Future Retail had asserted that the emergency award was of no consequence as it was not enforcable in India. Amazon, however, argued that the emergency award was binding on all parties as they had agreed to it as part of a contract.
In the meantime the Competition Commission of India approved the acquisition of wholesale, retail, warehousing and logistics businesses of Future Group to Reliance Retail last month.