The top court was hearing an appeal of e-commerce giant Amazon challenging Delhi High Court's decision to stay an order upholding an emergency arbitrator award restraining Future Retail Limited (FRL) from going ahead with its Rs 24,731 crore assets sale deal with Reliance Retail.
On March 22, a Division Bench of High Court Chief Justice D N Patel and Justice Jasmeet Singh had stayed a March 18 order of Justice J R Midha ordering attachment of the assets of Future Coupons Private Limited (FCPL), FRL, Kishore Biyani and 10 others promoters.
Amazon has been seeking enforcement of an order of the emergency arbitrator (EA) at the Singapore International Arbitration Centre (SIAC) restraining FRL from taking any steps to transfer its retail assets.
Amazon has a 49 per cent stake in FCPL, which in turn owns a 9.82 per cent stake in FRL. Amazon's contention is that it has invested Rs 1,431 crore in FCPL on the clear understanding that FRL would be the sole vehicle for its retail business and its retail assets would not be alienated without consent and never to a Restricted Person.
FRL, on the other hand, has objected to the enforcement of the EA award saying that it is not an order under Section 17(1) of the Arbitration and Conciliation Act and hence not enforceable in India.
FRL has contended that the Rs 24,731 crore deal was very important to save its 25,000 employees. It had said as per the deal, Reliance will not only take over FRL's shops but also all its liabilities.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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