Future Retail, led by Kishore Biyani, told the Delhi High Court on Thursday that Amazon is not its shareholder and has no say in its affairs. The Singapore International Arbitration Centre (SIAC) approved the provisional The order has no value.
After the US-based company filed an emergency arbitration against Future Retail for alleged breach of contract, Future Group and Amazon were in a battle.
SIAC passed an interim order on October 25, supporting Amazon to prohibit Future Retail from taking any steps to dispose of or occupy its assets or issue any securities to obtain any funds from restricted parties.
Subsequently, Amazon sent a letter to the market regulator SEBI, the Stock Exchange of India and the Competition Commission (CCI), urging them to consider the Singaporean arbitrator’s interim decision because it is a binding order.
Harish Salve, a senior defense attorney representing Future Retail, told judge Mukta Gupta that the emergency arbitrator’s order is worthless and has no legal effect.
“I have the right to ignore it. I am under the jurisdiction of the Indian courts. If the gentleman sitting in Singapore says something, I can refuse the order. This is not disrespect. I am talking about legal issues.” “Salve argued .
He said that Amazon only holds shares in Future Coupons, a shareholder of Future Retail, and therefore has no say in Future Retail’s affairs.
“Amazon is not even a minority shareholder in Future Retail. How does he propose to grant rights?” He added that Amazon is claiming a minority stake, not even holding a share in Future Retail.
“…Thousands of people may be unemployed and retail may go bankrupt in the future, but this great American giant should not be frustrated! Compare the data invested by Amazon and the products provided by Reliance. This is what it takes to save Future Retail from bankruptcy Quantity,” he said.
The application submitted on behalf of Future Retail will continue on November 19.
On November 10, the court asked Amazon to respond to Future Retail’s complaint, alleging that e-commerce professionals intervened in a transaction of Rs 24,713 crore with Reliance Retail in accordance with an interim order of the Singapore arbitrator.
The court also issued subpoenas to Amazon, Future Coupons and Reliance Retail regarding Future Retail’s lawsuit and required them to submit written statements within 30 days.
It once said that the maintainability of Amazon’s lawsuit will remain to be resolved. Future Coupons and its promoters also support Future Retail’s claims and claims.
Future Retail, Future Coupons and Reliance all contend that if Amazon accepts Amazon’s claim to indirectly invest in Future Retail through investment in Future Coupons, it will constitute a violation of the Indian Foreign Direct Investment Law, which only allows 10 foreign entities The investment ratio in the multi-brand retail sector is 50%.
They also said that the concept of group companies cannot be applied immediately.
Gopal Subramanium, a senior advocate who has appeared on Amazon, opposed Future Retail’s request, saying that all the arguments made here were made before EA accepted and rejected their EA. He once said that Future Retail, a company of Future Group, will be bound by an arbitration agreement between Future Coupons and Amazon.
He further argued that Future Coupons owns 9.82% of Future Retail and since Amazon holds 49% of Future Coupons, e-commerce professionals will only account for half of its 9.82% shares. In August of this year, Future has reached an agreement to sell its retail, wholesale, logistics and warehousing departments to Reliance.
According to the SIAC interim order, it is necessary to establish a three-person arbitration panel within 90 days (from the date of the judgment). Future and Amazon will appoint a judge and a third middle legislator respectively.
On November 10, Amazon told the court that Amazon and Future Coupons had appointed their respective arbitrators.
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