Amazon-Future case in HC: Group of Companies Doctrine can t be invoked
By IANS |
Published on
Tue, Feb 9 2021 14:27 IST |
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Delhi HC refuses to restrain Amazon, says suit filed by Future Retail maintainable. Image Source: IANS News
New Delhi, Feb 9 : A division bench of the Delhi High Court has said in its order that a reading of the agreement clauses shows that Amazon has no intent to exercise control over Future Retail Limited (FRL) and prima facie there was no reason to seek a status quo order before the learned single judge.
A division bench of the Delhi High Court comprising of Chief Justice D. N. Patel and Justice Jyoti Singh has stayed the operation and effect of order passed by the single judge ordering a status quo in the deal between Future group and Reliance.
In setback to Amazon, Delhi HC stays status quo on Future-Reliance deal ANI | Updated: Feb 09, 2021 02:23 IST
New Delhi [India], February 9 (ANI): The Delhi High Court on Monday stayed single judge bench order which had directed Future Retail Limited (FRL) to maintain the status quo with respect to its deal with Reliance and issued notice to Amazon on Future Retail Ltd plea. The court listed the matter for further hearing on February 26, and issued notice to respondents including Amazon.
A division bench of Chief Justice DN Patel and Justice Jyoti Singh order came after hearing the appeal filed by FRL.
The court said that as far as the maintainability of the appeal filed by FRL is concerned, the prima facie view that the appeal is maintainable as the impugned order has been passed on a petition filed by Amazon and the applicant s appeal were filed under different orders.
Delhi HC stays single judge’s status quo order on Future-Reliance deal
February 08, 2021
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A Delhi High Court Division Bench today stayed the status quo order passed by a single judge in the case related to the dispute between Amazon and Future Retail.
Chief Justice DN Patel and Justice Jyoti Singh said the
prima facie reason was that Future Retail was not a party to the August 22, 2019 Shareholders Agreement executed between Amazon, Future Coupons Private Limited and the promoters of Future Retail, under which arbitration was initiated by Amazon in Singapore. Also, the US e-commerce giant was not a party to the deal between FRL and Reliance Retail. The deals “are different” and “therefore, the group of companies doctrine cannot be invoked”, it said.
The Delhi High Court on Monday stayed its single-judge direction to Future Retail Ltd (FRL) and various statutory authorities to maintain the status quo with regard to the Rs 24,713-crore deal with Reliance Retail in a setback for Jeff Bezos-led e-commerce giant Amazon, which has challenged the transaction. A division Bench of Chief Justice D N Patel and Justice Jyoti Singh was hearing the appeal filed by FRL against the court s order passed last week. The court had said it was satisfied that an immediate interim order was required to be passed to protect the rights of Amazon. On Monday, the division Bench noted that FRL was not a party to an arbitration agreement with Amazon and prima facie the “group of companies” doctrine could not be invoked in the present case as the three agreements Future Retail Shareholding Agreement (SHA), Future Coupons Pvt Ltd (FCPL) SHA, and FCPL Share Subscription Agreement were distinct in nature, according to law platform Bar & Bench.