Fri. Jan 21st, 2022

A Delhi court has rejected Future Retail’s appeal to declare arbitration proceedings with illegal.

Shares in Future Group companies fell a day after an Indian court rejected Future Retail’s appeal to declare arbitration proceedings with now-estranged partner Inc illegal.

Judge Amit Bansal at the Delhi High Court on Tuesday said Future’s applications had been rejected. The arbitration proceedings will resume this week.

Future Retail again appealed to the Delhi High Court on Wednesday to declare the proceedings illegal. The case is likely to be heard by a two-judge bench later in the day.

On Wednesday, Future Lifestyle Fashions, Future Consumer, Future Retail and Future Enterprises fell as much as between 3.6 percent and 5.8 percent in a marginally strong Mumbai market.

The Delhi court ruling is the latest legal twist in the Future-Amazon saga. The arbitration case involved the sale of some of Future’s physical assets, such as stores and warehouses, to Reliance Industries Ltd. consumer market.

Amazon had successful for months used the terms of its $ 200 million investment in Future in 2019 to thwart the Kishore Biyani-owned company’s attempt to sell retail assets to Reliance, until the antitrust agency suspended the 2019 deal last December on ground of it Amazon suppressed information while seeking regulatory approval for the transaction.

Armed with the antitrust ruling against Amazon, Future Retail has asked the Delhi High Court and the Singapore Arbitration Tribunal to say that continued arbitration would be illegal. The Singapore tribunal on December 30 refused to consider Future Retail’s request to end the arbitration before a final hearing began later this week, prompting the Indian retailer to move the Delhi court.

Since August 2019, when Amazon announced its investment in Future, Future Retail’s shares have fallen about 87 percent.

Future Group, Amazon and Reliance did not immediately respond to Reuters’ requests for comment.

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