The Supreme Court has given both parties until March 15 to explore a settlement through negotiations.
Topics
Amazon | Future Group | Supreme Court
US e-commerce giant Amazon has once again proposed a dialogue with Future Group to end legal battles and Kishore Biyani-led retailer Future has agreed to arrive at a resolution. The Supreme Court has given both parties until March 15 to explore a settlement through negotiations. During a hearing on Thursday, the Supreme Court told the three parties–Amazon.com, Future Retail (FRL) and its promoter Future Coupons Pvt Ltd (FCPL–to find ways to reach a settlement. Senior lawyers Harish Salve, representing FRL and Mukul Rohatgi, appearing for FCPL, agreed to the proposal.
Amazon through its counsel Senior Advocate Gopal Subramanium proposed talks with Future Retail. During a hearing before the Supreme Court, he said the “whirlpool” of litigation was being dragged for too long.
“We cannot let the spinners wheel to continue. At least have a conversation,” Subramanium told the court.
A counsel for Future Group agreed to hold talks with Amazon. The court welcomed talks saying the move is in the interest of all stakeholders. The judges said the two sides could take ten days to reach a possible solution.
“What stops Amazon to call Mr Kishore Biyani and discuss. Let me assure you no one is winning in this battle. Amazon God has to come to the ground and speak to lesser mortals like us,” said Senior Advocate Harish Salve who appeared for FRL. “No one is winning. FRL, Reliance and Amazon all have issues. I don’t know why we need a court order for a dialogue.”
Amazon has also assured that it will not file any fresh proceedings against Future while the talks are underway. It also raised concern about investor sentiment given the delays in getting contractual obligations implemented even after having an injunction order. Amazon’s counsel highlighted that the investors in Adani and Reliance will also be worried.
“Amazon’s offer for a dialogue is not something new and it is good that Future Group is evaluating the opportunity,” said K. Narasimhan Senior Advocate Chennai High Court. “This development can benefit both the brands’ but more importantly lift the spirits of employees and partners of FRL.”
The issue between Amazon and Future goes back to August 2019, when Amazon acquired 49 per cent stake in Future Coupons, the promoter entity of FRL (Future Retail), for around Rs 1,500 crore. One year later, in August 2020, Future Group struck a $3.4-billion asset-sale deal with Reliance Industries (RIL).
In October 2020, Amazon had sent a legal notice to Future for striking a deal with RIL. It alleged that Future’s $3.4-billion asset sale deal with RIL breached an agreement with Amazon. It cited its non-compete agreement with the Kishore Biyani-led chain. The deal specified any disputes would be arbitrated under the Singapore International Arbitration Centre (SIAC) rules. The same month, October 2020, Amazon got a favourable ruling for its plea in SIAC against the deal.
In November 2020, Future moved the Delhi High Court (HC) against Amazon, alleging interference by the US firm in the deal with RIL. Since then, Amazon has been fighting a legal battle with FRL to stop Future’s $3.4-billion deal with RIL.
“One should look at the statement made by Amazon’s counsel from the lens of ‘worry’. If Amazon can’t get a contractual obligation fulfilled, then the situation is bleak for other foreign investors too,” said K Giri Director-General Empower India , a think tank promoting corporate governance in the country.
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