JOIN USAmazon may move HC to enforce arbitration order on Future Group-RIL deal: Report
Amazon.com Inc is likely to move an Indian high court by next week to enforce a verdict by Singapore-based arbitration centre if Future Group decides to go ahead with the deal with Reliance Industries (RIL), according to a report by Mint.
Sources told the publication that Amazon and Future Group have a week’s time to mutually agree on whether to continue with the arbitration proceedings at the Singapore International Arbitration Centre (SIAC). In case of a stalemate, both the sides are likely to engage in a long-winding legal tussle.
“It has to be decided within seven days whether both parties wish to continue with SIAC proceedings and wait for its final judgement," a source told the publication. “If Future agrees with SIAC’s interim ruling and pauses the RIL deal, both Amazon and Future can mutually decide on the members of the arbitration panel, continue the hearings at SIAC and wait for the judgement," the source added.
DH independently could not verify the report.
The news comes days after reports that Kishore Biyani-led Future Retail, as well as Mukesh Ambani's RIL, are exploring a countersuit against Jeff Bezos’ Amazon.com.
RIL is said to approach a court challenging the clause invoked by Amazon before the Singapore arbitration court to ensure that its Rs 24,713-crore deal to acquire Future group’s assets by Reliance Retail Ventures Ltd (RRVL) proceeds unhindered and without any delay. The deal would help Reliance almost double its footprint as India's largest retailer.
Amazon had slapped a legal notice on Future Group, alleging that the asset sale to Reliance Industries violated an agreement with the e-commerce giant and dragged the Future group firm into arbitration.
On October 25, a single-judge arbitration panel passed an interim award in favour of Amazon, asking the Future group to put the deal on hold and said that the deal cannot go through until it finally decides the matter.
With the dispute, Amazon is drawing the battle lines with Reliance in the race for India's estimated $1 trillion retail market, where online shopping is gaining ground. It needs the Indian partner to strengthen its foothold after becoming the authorized online sales channel for Future Retail's stores that sell everything from groceries to cosmetics and apparel.