'Future Retail Will Sink With 30,000 Employees If Reliance Deal Doesn't Get Through' : Future Group Lawyers To Supreme Court In Case Against Amazon

In the Amazon-Future case, the Future Group on Tuesday submitted before the Supreme Court that being in a financially precarious situation, Future Retail Ltd will "sink with 30,000 employees losing their jobs" if the Rs 26,000 crores deal with the Reliance doesn't go through.Both FRL and Future Coupons Pvt Ltd argued that FRL should be allowed to go forward with the interlocutory proceedings of the scheme with Reliance to ensure that they would be able to finalise the deal once the dispute with Amazon is concluded.Senior Advocate Harish Salve appearing for Future Retail submitted: "We first sank because of lockdown when people wouldn't go to shops. We are in this financially precarious situation. Fortunately, banks are willing to wait and say that if the transaction goes through the Reliance deal, we will pay off the banks. The Reliance deal is close to 26,000 crores, and Amazon's stake is 14000 crores. Around 30,000 Jobs will be saved. If you put this all together, let us get to that final stage. Amazon's interests aren't hurt."Salve highlighted that under the Reliance deal, the employees are protected. "The 9th September order protects both sides which says no final orders are to be passed. The interlocutory proceedings be completed by then", Salve submitted referring to Supreme Court's earlier order dated 9th September 2021 which directed that no final orders are to be passed by any authority on the FRL-Reliance scheme.Senior Advocate Mukul Rohatgi appearing for Future Coupons submitted that at this stage, the balance of equities favours Future Group and Amazon's interests are not harmed at present. "The individual promoters of Future Group, the Biyanis - their head is in the noose. Their entire assets are hypothecated, if we don't get the reliance deal with FRL, everybody will be sunk, we have more than 25000 employees", Rohatgi submitted.Amazon Wants To Paralyse Everything: FRLMr Salve argued that Amazon wants to paralyse everything, as they are not interested in FRL and they are targeting the Reliance group which is their real competitor."If we go into bankruptcy, the 30000 people employed lose their jobs, these shops are closed. It's good for Amazon." Salve said A Bench comprising Chief Justice of India NV Ramana, Justice AS Bopanna and Justice Hima Kohli reserved its orders in the following two pleas:Special Leave Petitions of Future Coupons and Future Retail against Delhi High Court's Single Bench March 2021 order directing attachment of assets of Future group companies and its promoters for breach of Emergency Award (order passed by a single bench of Justice Midha) Special Leave Petitions of both FRL and FCPL challenging Delhi HC's 29th Oct order which refused to stay the Singapore Arbitration Tribunal's refusal to vacate the Emergency Award restraining it to continue with Reliance deal.During the hearing, the bench indicated that without going into larger aspects, it might ask the Delhi High Court to decide the Future Group's appeal against the Singapore Tribunal's order. The bench also said that Justice Midha's order could be set aside as subsequent developments have taken place with the Singapore Tribunal affirming the Emergency Award. Which order will operate? Emergency Arbitrator's Order or Constitutional Court's order?: FRL Mr Salve submitted that the Emergency Arbitrator injuncting FRL from going forward with the scheme with Reliance had come after the Delhi High Court had stated there is no arbitration agreement. Therefore, it has to be decided which of these orders will operate. He pointed out that a Single Judge of the Delhi High Court, by an order issued on December 21, 2020, in FRL's suit had held prima facie that FRL does not have an arbitration agreement with Amazon. No contractual rights against FRL can be asserted by Amazon Until CCI's Approval: FRLReferring to the recent order of the Competition Commission of India which revoked the sanction for Amazon's deal with Future, FRL argued that Amazon cannot seek to enforce its contractual rights against Future Group until it gets the CCI's sanction. Justice Midha's Order Fails to Satisfy the requirements of the Principles of Natural Justice: FRL According to FRL, the manner in which the Single Judge proceeded to pass the Enforcement Orders fails to satisfy the requirements of the Principles of Natural Justice. According to FRL, the prejudice occasioned to FRL is writ large in the Impugned Judgment, in which the Single Judge, after denying FRL an opportunity to file pleadings in the matter, rejected its contention that the Award of the Emergency Arbitrator is a nullity.Justice Midha's Order In teeth of the directions issued by a co-ordinate bench Delhi High Court: FRLFRL has submitted that the coordinate Bench of the High Court in its suit had issued an express direction to the concerned statutory authorities (SEBI and CCI) to consider Amazon's objections and pass appropriate orders on the applications filed by FRL for approval of the ...

'Future Retail Will Sink With 30,000 Employees If Reliance Deal Doesn't Get Through' : Future Group Lawyers To Supreme Court In Case Against Amazon

Srishti Ojha

This is a premium content
Available exclusively to
Our subscribers

INR 1099+GST

Tags

Srishti Ojha

'Future Retail Will Sink With 30,000 Employees If Reliance Deal Doesn't Get Through' : Future Group Lawyers To Supreme Court In Case Against Amazon

Srishti Ojha

This is a premium content Available exclusively to Our subscribers

INR 1099+GST

Tags

Srishti Ojha

This is a premium content
Available exclusively to
Our subscribers