Future Retail says SIAC order on RIL deal ‘not enforceable’  

2 November 2020 (Last Updated November 2nd, 2020 16:26)

Indian conglomerate Future Retail Limited (FRL) has said that the Emergency Arbitrator (EA) order passed by the Singapore International Arbitration Centre (SIAC) on Reliance Industries Limited (RIL) deal is ‘not enforceable’ and ‘not binding’ on it.

Earlier last month, e-commerce giant Amazon reportedly launched legal proceedings against Indian retailer Future Group for allegedly breaching the terms of a non-compete contract.

RIL’s subsidiary Reliance Retail Ventures Limited (RRVL) agreed to buy certain businesses of Future Group for ₹247.13bn ($3.38bn) in August.

Against this background, SIAC issued an interim order last week to hold off FRL’s deal with RIL.

In a stock exchange filing, FRL also said the EA is “void and coram non-judice” and vows to resist on any move to enforce the order.

The company said in a statement: “The EA Order is not enforceable under the provisions of the Arbitration and Conciliation Act, 1996 and is not binding on FRL.

“Any attempt on the part of Amazon to enforce the EA Order shall be resisted by FRL to the fullest extent available under Indian law.

“FRL is also in the process of taking appropriate legal action to protect its rights.

“This contention raised by Amazon is entirely misconceived. In fact, if the two separate agreements were treated as a single integrated transaction by which Amazon obtained an interest in and rights against FRL, then in 2019.”