With talks over an out-of-court settlement between Future Group and Amazon failing, the e-commerce major on Wednesday urged the Supreme Court to stop Reliance Industries (RIL) from opening new stores in the premises where Future Retail (FRL) stores ) were located until such time as the arbitral tribunal in Singapore adjudicates on the case related to the dispute.

“Pass an order prohibiting the opening of a new store in lieu of FRL’s store assets in the same premises…. or, instead, declare as null and void the alleged disposal of FRL’s retail assets, which is manifestly contrary to the restrictions injunctions,” Amazon, which is involved in a legal dispute with Future over the sale of retail assets to Reliance Retail, said in its new application.

The Supreme Court will rule on the case on March 23.

Amazon’s new petition in the SC becomes important as the stores owned by FRL have been acquired by Reliance Retail since last month, with Future defaulting on rent. The lessors of the shops had canceled FRL’s leases in default and leased them to Reliance, who then sublet them to Future.

For example, some 950 stores were acquired by Reliance, which has now closed them after the termination of the sublease to Future. According to Reliance’s plans, the stores would reopen after being rebranded as Reliance Retail stores once inventory and other inventory reconciliation is over.

Amazon has objected to such a move by Reliance, saying in court on Wednesday that it violates the preliminary injunctions of the Singapore tribunal, as well as SC, both of which had ordered that the status quo on the Future-Reliance deal be reversed. . Amazon said that if FRL stores are taken in this way, the entire aim of going ahead with the arbitration will be dismissed.

In a public announcement on Tuesday, Amazon had said: “FRL was about to allegedly transfer the store assets to the MDA (Mukesh Ambani) Group … these actions have been done in a clandestine manner by playing a fraud on the constitutional courts of India”.

Senior counsel Gopal Subramanium, who appeared before Amazon, argued on Wednesday that the tribunal had already granted protections (against disposal of Future Group’s assets) and “if so far the injunction passed in 2020 has not been complied with, there is no point in filing another petition with the court”.

The Future Group also expressed willingness to resume the arbitration process suspended by the Delhi High Court in January.

Amazon accused the Future Group of committing “fraud” and stated that FRL had transferred its stores to Reliance after it assured the SC on September 9, 2021 that its store assets will remain with it until the final injunction to approve the the merger settlement comes from the National Company Law Tribunal.

On March 9, FRL said in a grant application that it was no longer the tenant of its stores and had relinquished about 900 stores (which contributed 55%-65% of FRL’s total sales) to Reliance between February and March. conducted its retail activities.

The circumstances under which the surrender of the leases led to the transfer to the Mukesh Dhirubhai Ambani (MDA) Group, after which the latter gave a license to FRL to continue operating from the same premises as a licensee, and the subsequent surrender of such licenses which resulted in Reliance ‘acquiring and operating’ the 950 retail properties, “establishes that the entire transaction was nothing but a cover and ruse falsely adopted by FRL, with the knowledge and conspiracy of the MDA Group, to acquire the retail assets” Amazon said in its 371-page application.

This post Prevent Reliance Industries from taking over future stores: Amazon urges Supreme Court

was original published at “https://www.financialexpress.com/industry/restrain-reliance-industries-from-taking-over-future-stores-amazon-urges-supreme-court/2463347/”