Amazon has filed for an injunction against Future Retail Ltd as it has approached the National Company Law Tribunal for demerging the assets of the Future group and Reliance. Amazon has invested Rs. 1,400 crores in the Future Group in 2019.
Amazon has addressed several letters to the authorities to bring the stake sale deal to their notice but has not received any remedy.
In response the Future Retail Ltd. has filed for an injunction in December 2020 before the Delhi High Court to prevent Amazon from issuing these letters.
Though the Court held that the case of Future Retail Ltd. prima facie has merit, the injunction was not granted.
Amazon in its injunction petition plead before the Delhi High Court to implement the stay order passed by the Singapore International Arbitration Centre on the said stake sale deal worth of Rs. 24,000/-.
It was contended by the advocate appearing for Amazon that, since the respondents failed to raise objections or take action against the order delivered by the Emergency Arbitrator the parties would be required to abide by the order.
It was further contended that the letters directed to the authorities like SEBI and CCI by the Future Retail Ltd seeking the award to be ignored do not hold any value.
Section 17(2) of the Arbitration and Conciliation Act expressly provides that interim awards are to be considered as orders of a court and no party can unilaterally declare it to be a nullity.
The e-commerce giant also prayed for a restraining injunction order against the respondents to prevent them disposing any of the retail assets and sought damages.
In addition, they sought for civil detention of the Directors and promoters of the Future Group.