Future Retail to pursue all options to conclude deal with Reliance, to protect interests of stakeholders and workforce

Future Retail said it intends to pursue all avenues to conclude its deal with Reliance Retail and protect the interests of stakeholders and the workforce.

“FRL is advised that it has remedies available in law, which it will exercise,” Future Retail said in a stock exchange filing on August 6, hours after the Supreme Court ruled in favour of Amazon by upholding the Singapore International Arbitration Centre’s interim award staying the transaction.

Also Read: SC rules in favour of Amazon in dispute with Future Retail, says arbitrator’s award enforceable in India

The arbitral tribunal has concluded hearings on the questions of whether the interim award of the emergency arbitrator should continue and whether FRL is at all a party in the arbitration proceedings, Future Retail said in the filing. The decision of the arbitral tribunal is awaited, it said.

People familiar with the case said the apex court’s verdict does not deal with the merits of the dispute between Future Retail and Amazon, but with questions of law, which are academic in nature.

Future Retail is expected to file a special leave petition before the Supreme Court against an order of Delhi High Court justice JR Midha in March this year, which upheld the decision of the SIAC emergency arbitrator.

The Kishore Biyani-led company will also file an appeal under Section 37 (2) of the Arbitration and Conciliation Act against the arbitrator’s interim award before the Delhi High Court to obtain relief to proceed with the deal, the people added.

Also Read: How the Amazon, Future Retail saga unfolded in multiple courts

Biyani moved to sell Future Group’s assets to Reliance Retail in a Rs 24,713 crore deal after operations suffered under the national lockdown during the first wave of Covid-19 last year.

The apex court’s order comes almost a year after Reliance Retail announced the acquisition of Future Group’s retail and wholesale assets and the logistics and warehousing businesses by way of a slump sale. Amazon, which had acquired a 49 percent stake in Future Retail’s promoter entity Future Coupons in December 2019, said the deal went against its agreement with the Future Group.

The e-commerce giant challenged the deal in the arbitration court as well as the Delhi High Court and subsequently the Supreme Court.

Disclosure: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.