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US e-commerce giant Amazon has again proposed a dialogue with Future Group to end their legal battles, to which the Kishore Biyani-led retailer has agreed. The parties are in dispute on Reliance Industries Ltd (RIL) acquiring Future Group companies. The Supreme Court has given both sides time until March 15 to explore a settlement.
During a hearing on Thursday, the court told the three parties —Amazon.com, Future Retail (FRL), and its promoter Future Coupons Pvt Ltd (FCPL) —to find ways to reach a settlement.
The judges said the two sides could take 10 days to reach a solution. Senior lawyers Harish Salve, representing FRL, and Mukul Rohatgi, appearing for FCPL, agreed to the proposal. Amazon, through counsel Gopal Subramanium, proposed talks with Future Retail. During a hearing before the Supreme Court, he said the “whirlpool” of litigation dragged too long.
“We cannot let the spinner’s wheel to continue. At least have a conversation,” Subramanium told the court.
Salve said: “What stops Amazon from calling Mr Kishore Biyani and discussing. Let me assure you no one is winning in this battle. Amazon God has to come to the ground and speak to lesser mortals like us.”
“No one is winning. FRL, Reliance, and Amazon all have issues. I don’t know why we need a court order for a dialogue.”
Amazon has said it will not file any fresh proceedings against Future Group while talks are underway.
It raised concern about investor sentiment, given the delay in getting contractual obligations implemented even after having an injunction order. Amazon’s counsel said the investors in Adani and Reliance would also be worried.
ALSO READ: Future Retail shuts Big Bazaar as Reliance Industries plans takeover
“Amazon’s offer for a dialogue is not something new and it is good that Future Group is evaluating the opportunity,” said K Narasimhan, senior advocate, Madras High Court. “This development can benefit both the brands but, more importantly, lift the spirits of employees and partners of FRL.”
The issue between Amazon and Future goes back to August 2019, when Amazon acquired 49 per cent in FCPL, the promoter entity of FRL, for around Rs 1,500 crore. One year later, in August 2020, Future Group struck a $3.4-billion asset-sale deal with RIL.
In October 2020, Amazon sent legal notice to Future for doing the deal. It alleged it breached Future’s agreement with Amazon. It cited its non-compete agreement with the Kishore Biyani-led chain. The deal specified any disputes would be arbitrated under the Singapore International Arbitration Centre (SIAC) rules. The same month, October 2020, Amazon got a favourable ruling for its plea at the SIAC.
In November 2020, Future moved the Delhi High Court (HC) against Amazon, alleging interference by the US firm in the deal with RIL.
The battle is going on.
“One should look at the statement made by Amazon’s counsel from the lens of ‘worry’. If Amazon can’t get a contractual obligation fulfilled, then the situation is bleak for other foreign investors too,” said K Giri, director, General Empower India, a think tank promoting corporate governance in the country.
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