Singapore arbitration panel issues order to put Future Retail-RIL deal on hold

26 October 2020 (Last Updated October 26th, 2020 15:37)

Singapore International Arbitration Centre (SIAC) has issued an interim order to hold off Future Retail Limited (FRL) deal with Reliance Industries Limited (RIL). 

Singapore arbitration panel issues order to put Future Retail-RIL deal on hold
Amazon expects sales to surpass $100bn in the fourth quarter (Q4) due to Black Friday and Christmas spending. Credit: Christian Wiediger via unsplash.

Singapore International Arbitration Centre (SIAC) has issued an interim order to hold off Future Retail Limited (FRL) deal with Reliance Industries Limited (RIL).

The order from SIAC follows the action taken by e-commerce retailer Amazon earlier this month.  

Amazon launched legal proceedings against Indian retailer Future Group for allegedly breaching the terms of a non-compete contract.    

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

In a stock exchange filing, FRL said: “FRL is examining the communication and the order.  

“It may be noted that FRL is not a party to the agreement under which Amazon has invoked arbitration proceedings.    

“FRL has been legally advised that actions taken by the FRL / its board, which are in full compliance of the relevant agreements and eminently in the interest of all stakeholders cannot be held back in arbitration proceedings initiated under an agreement to which FRL is not a party.” 

FRL noted that Indian Law and provisions of the Indian Arbitration Act govern all relevant agreements. 

The company added: “Accordingly, this order will have to be tested under the provisions of Indian Arbitration Act in an appropriate forum.  

“In any enforcement proceedings, FRL would take appropriate steps to ensure that the proposed transaction will proceed unhindered without any delay.”