 "Supreme Court rules in favour of Amazon in the Future Retail case")
The Supreme on Friday ruled that Future Retail's $3.4-billion deal to sell its retail assets was bound by an arbitrator's order that put the transaction on hold. This is a big boost to partner Amazon, which had sought to block the deal.
Amazon and Future had been locked in legal battles over the deal, with the US firm accusing the Indian group of violating pre-existing contracts when it sold its assets to rival Reliance Industries. Future has denied any wrongdoing.
The Supreme Court said that an order by Singapore's Emergency Arbitrator (EA) in October to put the deal on hold was valid in India, PTI reported.
Amazon had argued that the order was binding, while Future had argued it was not.
On July 29, the Supreme Court had reserved its judgment in Amazon’s appeal against a Delhi High Court order staying a previous order directing the attachment of properties of Future Group companies and Kishore Biyani in relation to the Future-Reliance deal.
Earlier, the Supreme Court had on February 22 barred a final ruling by a tribunal reviewing Future Group’s $3.4-billion sale of retail assets until the Court heard objections from Amazon.
Amazon and Future had been locked in legal battles over the deal, with the US firm accusing the Indian group of violating pre-existing contracts when it sold its assets to rival Reliance Industries. Future has denied any wrongdoing.
The Supreme Court said that an order by Singapore's Emergency Arbitrator (EA) in October to put the deal on hold was valid in India, PTI reported.
A bench of Justices R F Nariman held that an award of an EA of a foreign country is enforceable under the Indian Arbitration and Conciliation Act despite the fact that the term EA is not used in arbitration laws here.
Amazon had argued that the order was binding, while Future had argued it was not.
On July 29, the Supreme Court had reserved its judgment in Amazon’s appeal against a Delhi High Court order staying a previous order directing the attachment of properties of Future Group companies and Kishore Biyani in relation to the Future-Reliance deal.
Earlier, the Supreme Court had on February 22 barred a final ruling by a tribunal reviewing Future Group’s $3.4-billion sale of retail assets until the Court heard objections from Amazon.
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