SC lifts stay on global tribunal hearing in Amazon-Future Group case

Development follows Delhi High Court stay on SIAC hearing the case on January 5

The Supreme Court has lifted a January 5 stay by the Delhi Hight Court on the Singapore Arbitration Tribunal Centre (SIAC) in the hearing of the case between Amazon and the Future Group.

The top court asked Future Group and Amazon whether they had any issues with resuming arbitration proceedings. If they didn't, then the court would pass an order to resume arbitration proceedings. Both parties confirmed that the did not have any issues.

Amazon approached SIAC in October 2020 to oppose the Rs 24,713 crore deal signed in August 2020 between Reliance Industries and Future Group.

SC also asked Future Group to file a reply to the interim application that the court had allowed Amazon to file on Tuesday, and adjourned the case to March 23.

Both parties also informed the top court on Tuesday that negotiations between them to resolve the legal battle arising out of the sale of Future Group’s assets to RIL have not led to a resolution. On March 3, Amazon had proposed a dialogue with Future Group and RIL to end the legal deadlock and the court had given them time till March 15 to come up with a settlement.

Amazon had also informed the SC on Tuesday that Reliance Industries had taken over the bulk of Future Group stores. In a newspaper ad on Tuesday, the US e-commerce major accused Future Retail and RIL of “fraud” over the transfer of stores.

Reliance Industries had started taking over Future Group stores on February 25.

Future Group had sub-leased stores from Reliance Industries and in an exchange filing on February 26, it said that it received termination notices for a significant number of stores, due to huge outstandings.

On March 9, Future Group said in two seperate stock exchange filings that it received termination notices on March 7 and March 8 for 947 stores that it had sub-leased from Reliance entities.

Future Retail received termination notices for 342 Big Bazaar and Fashion@Big Bazaar (fbb), 493 small format stores which include easyday and Heritage stores.

Future Lifestyle also received termination notices for 78 Brand Factory stores and 34 central stores, which have been contributing 55-65 per cent of the company’s retail revenues, it said in its stock exchange filing. Future Group had approximately 1,500 outlets of which 550 are still with it.