'Can't Stop Reliance Taking Over Stores As We're Broke' : Future Retail Tells Supreme Court In Amazon's Case

"We've been saying from day one that Amazon is driving us to our knees, they have done it, we're broke. We've no money to fight it." lawyer for Future Retail on Tuesday submitted before the Supreme Court.Senior Advocate Harish Salve appearing for Future Retail Limited made the submission before a Bench comprising the Chief Justice of India NV Ramana, Justice AS Bopanna and Justice Hima Kohli. The submission came in response to the contention put forth on behalf of e-commerce giant Amazon that Future Retail is handing over its assets and stores to Reliance in violation of orders of the Arbitral Tribunal and the assurances made by it before the Apex Court.Senior Advocate Salve submitted that no assets have been transferred and the stores have been taken over by Reliance. He added that Future Group has time and again told all the forums that if the injunction is not withdrawn and its deal with Reliance doesn't go through, the Future Group will have no money."A large amount is today owed to Reliance, we have no money to put down. We can talk about the glory and grandeur of things, but when we're broke we're broke. That is the hard reality. We have been strangulating, because of all these injunctions and the scheme not going through", Mr Salve said.With regard to the transfer of assets, Mr Salve submitted that Future Group has been unable to pay the rent for over 2 years, and the landlords are therefore terminating its leases. "We had no money to pay them, which is what we've been telling all forums. Reliance signed up with the landlords. We were continuing on leave license for year and a half, over 2000 crores were due as leave license fee to Reliance, we were in no situation to pay that. They have terminated it, they've walked in, quite a number of stores they have taken it. Today even if we go to a court they will say pay the money upfront." Mr Salve saidSenior Advocate Mukul Rohatgi appearing for Future Coupons Limited while supporting Mr Salve's submission also submitted that, "The shops are there! What's the point of saying it's been taken over. He can't orally talk about it, he can file a petition and we will reply."The Shop takeover started 15 days ago. We've no control, if Reliance is acting outside this litigation. Reliance is taking over, we can't do anything. What do we do? We haven't signed anywhere. In fact Mr Biyani went and protested." Mr Salve said. In the Future- Amazon dispute, the lawyers on behalf of the American e-commerce giant Amazon had on last occasion proposed to have an informal dialogue with the Future Group to settle the dispute amicably. The Supreme Court had therefore adjourned the matter.Today, at the outset, Senior Advocate Gopal Subramanium for Amazon informed the Court that the dispute could not be resolved through discussion. 'Nothing can happen through conciliation, we tried but nothing can happen", he said Mr Subramanium however submitted that another development of concern has taken place in the case. He added that since the proceedings have been going on before the Supreme Court, it has always been submitted by the Future Group that they should be allowed to go on with the NCLT proceedings and no prejudice will be caused to Amazon. However, contrary to those submissions, even when proceedings are pending before different forums the FRL shops have been taken over by Reliance. Further, not only has Reliance taken over, it has also come in public disclosure. "When an order was passed by Emergency Arbitrator, Reliance had made a filing with stock exchange to say that they will enforce their obligations as far as future group is concerned", he said Mr Subramanium further submitted that they want the arbitration to resume. Responding to Mr Subramanium's submissions, the Bench observed that some orders will have to be passed by the court. The Bench further opined that it has been very lenient in the present matter by granting adjournments. Senior Advocate Subramanium submitted that he doesn't don't want a message to go that orders of court can be happily flouted. "It is one of greatest democracy. The Highest court is told that no assets will be transferred, its been recorded, let NCLT carry on and during pendency the orders have been flouted. They have terminate leases with the old landlords, and Reliance is taking over the stores." Mr Subramanium said. "Last time we said that agree for a early hearing before the High Court. Proceedings are going on and all this is happening.We're getting a feeling that by adjourning matter, we're being lenient", CJI said "The Tribunal has now said that they have dates available, Your court had said let them hear my strike out petition. We can go to the Tribunal and they can take it forward." Mr Salve said Calling it a welcome development, Mr Subramanium agreed with the Court's suggestion that the parties may go back to the Arbitral Tribunal and submitted that he is not standing in way of their termination application. Senior Advocate ...

'Can't Stop Reliance Taking Over Stores As We're Broke' : Future Retail Tells Supreme Court In Amazon's Case

Srishti Ojha

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