Frankly, it doesn't make any sense to us anymore. Also, let us confess that it has gone beyond the ability of us to explain what is happening in the Future Group and Amazon fight without tying ourselves in confusing knots.
Just on Tuesday, a single-judge Bench of the Delhi High Court refused to entertain the plea of Kishore Biyani's Future Group plea to stop Amazon's arbitration proceedings against it in a Singapore court.
And on Wednesday, a two-judge Bench of the same court has stayed the same arbitration on before the Singapore International Arbitration Centre (SIAC) until further orders.
The court observed that the prima facie case was in favour of Future group. "...there is a prima facie case made out in the favour of appellants. Moreover, balance of convenience is in favour of appellants," it said.
But as we said, we are at our wit's ends to explain the 180-degree turn in just 24 hours in the case. The issue has seen so many such to and fros that the pendulum in a working clock looks stable in comparison.
The Future Group had knocked on the doors of the High Court after the Competition Commission of India (CCI) had last month revoked its clearance to Amazon’s 2019 deal with Future Coupons, a subsidiary of Future Group.
Amazon, for its part, is seeking to strike down Reliance Industries' Rs 24,713 crore deal to buy the retail assets as well as warehouses of the Future Group.
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Next hearing on February 1
What more, the issue itself is complicated as it involves three big entities, two deals, and fights at three different legal fronts --- Future Group, Amazon and Reliance. The deal between Amazon and Future Group, and the deal between Future and Reliance. Singapore Arbitration Panel, Delhi High Court and the Supreme Court are the three legal fronts.
Anyway, on Wednesday the High Court has agreed to hear the appeal on merits in detail on February 1 and in the meantime the court has stayed the further proceedings of arbitral tribunal as well as the single-judge’s order that dismissed Future group’s plea.
It may be recalled that the Supreme Court in August 2021 had upheld the emergency award given to Amazon by SIAC.
Amazon had bought 49% stake in Future coupon in 2019, which gave it access to 3% stake in Future Retail. As per Amazon’s agreement with Future Group when the deal was signed, the Biyani-led company could not sell any of its retail assets. The Future Group, however, later sold its retail assets to Reliance under financial duress.
The Future Group, which needs the money to prevent liquidation of its assets, has said it is not a party to the agreement under which Amazon has invoked arbitration proceedings.
So what will happen on February 1? For certain, we looking clueless again.
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