SIAC rejects Future Group’s plea to terminate the arbitration proceedings

SIAC rejects Future Group’s plea to terminate the arbitration proceedings

The Singapore International Arbitration Centre (SIAC) has dismissed Future Group’s plea to terminate the arbitration proceedings between the Kishore Biyani-led firm and Amazon.

The order said that there is no ground for the termination of the proceedings under Section 32 of the Arbitration Act.

The order comes after Future Retail filed a petition in SIAC asking for the termination of the proceeding on the basis of Competition Commission of India’s (CCI) order that suspended the deal between Amazon and Future Coupons.

SIAC also made observations in its order that has been seen by Business Standard, “The Tribunal finds that the Section 7 IBC Application has not rendered the continuation of these proceedings impossible or unnecessary.”

The order by Michael Hwang, the presiding arbitrator for the tribunal also said, “It is unnecessary for the Tribunal to make any findings with respect to Amazon’s contention that the termination applications ought to be rejected on account of Respondent’s contumacious conduct.”

On April 23, Reliance Retail said it will not move on its plan to buy Future Group’s businesses after secured lenders to the Kishore Biyani-led company voted against the deal.

A majority of secured creditors had voted against the resolution needed to approve Future Group’s Rs 24,713 crore scheme to sell most of its retail and logistical businesses to Reliance Retail.

As part of the Rs 24,713-crore deal Future Group announced in August 2020, Future Retail is to sell 19 companies operating in the retail, wholesale, logistics and warehousing segments to Reliance Retail Ventures.

Post the deal, Amazon then approached SIAC in 2020 on the back of its 2019 deal with Future Coupons to oppose Future Group’s deal with Reliance Retail.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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