The Delhi court rejected Future Retail’s appeal, declaring that the arbitration proceedings with Amazon.com were illegal.
One day after the Indian court rejected Future Retail’s appeal that the arbitration proceedings with its now separated partner Amazon.com Inc were illegal, Future Group’s stock price fell.
Delhi High Court Judge Amit Bansal (Amit Bansal) said on Tuesday that Future’s application was rejected. The arbitration proceedings will resume this week.
On Wednesday, Future Retail again appealed to the Delhi High Court, seeking to declare the proceedings illegal. The case is likely to be heard by a bench of two judges later in the day.
On Wednesday, in the slightly stronger Mumbai market, Future Lifestyle Fashion, Future Consumer, Future Retail, and Future Enterprise share prices fell 3.6% to 5.8%.
The Delhi court’s ruling is the latest legal turning point in the future Amazon legend. The arbitration prevented some of Future’s physical assets (such as stores and warehouses) from being sold to Reliance Industries Ltd. The suspension or termination of the arbitration case will be a setback for Amazon. Amazon is competing with Reliance for a market share of over 1 billion in the consumer market in India.
Amazon has Months of success The terms of its $200 million investment in Future in 2019 prevented Kishore Biyani-owned companies from attempting to sell retail assets to Reliance until the antitrust agency suspended the 2019 transaction in December last year on the grounds Amazon suppresses information At the same time, it seeks regulatory approval of the transaction.
Relying on the antitrust ruling against Amazon, Future Retail has filed a petition with the Delhi High Court and the Singapore Arbitration Tribunal, claiming that it is illegal to proceed with the arbitration. The Singapore court refused to consider Future Retail’s request to terminate the arbitration before the final hearing later this week on December 30, prompting the Indian retailer to file a lawsuit in the Delhi court.
Since Amazon announced its investment in Future in August 2019, Future Retail’s stock price has fallen by about 87%.
Future Group, Amazon and Reliance did not immediately respond to Reuters’ request for comment.