Court will step in
A Supreme Court bench led by Chief justice NV Ramana has given Amazon and Future Group 12 days time to reach a possible solution. “We will simply adjourn for 10 days. It is better in the interest of businesses to resolve. If you cannot reach a solution, we will step in,” the CJI said. The Supreme Court has now adjourned the case till March 15. The top court told the three parties – Amazon, Future Retail and Future Coupons Pvt Ltd (FCPL) to find ways to reach a settlement.
Amazon and Future Group have agreed to talks. Both parties hope to resolve the “whirlpool” of disputes fought on multiple fronts and being dragging on for too long.
Suggesting an out of court negotiation, Amazon counsel Gopal Subramanium suggested an out of court negotiation. He said: “We need to enter in some dialogue/talks. We cannot allow the spinners’ wheel to continue like this. Let’s come face-to-face and discuss the best possibilities to resolve the matter.”
Counsel for Future Group, Harish Salve agreed to the talks. He said, “nobody is winning in this battle”. The judges said the two sides can take 10 days to reach a possible solution. “There are three giant businesses involved and they don’t need any arbitrator. Also, if Amazon calls Biyani, Reliance will also have to join the call,” Harish Salve said. He also said that while the talks are on, the HC/NCLAT hearing should go on.
RIL takes control
Since 2020. Amazon has stalled Future’s $3.4 billion asset sale to Reliance Industries. It had said that it was in violation of its 2019 deal in which it had invested $ 200 million in Future Group. Future denies any wrongdoing, according to media reports.
The recent development came just days after Reliance Industries started seizing control of around 500 Future stores to rebrand and open as their own outlets. RIL had transferred leases of some of the stores of Future to its name and sublet them to Biyani’s firm, however since Future was not able to pay the lease rent, RIL is now taking over.
Reuters had reported that Amazon is planning to initiate criminal court proceedings against Future. But Amazon denied it. Reuters had said that Amazon will file a criminal case for allowing the transfer of assets to a major rival despite a legal prohibition.
