The Delhi High Court on Monday noticed that Future Retail Ltd (FRL) may not have been in breach of the SIAC‘s ruling on account of the February takeover of round 900 Future Group shops by Reliance Industries.
“FRL surrenders its leases to the landlords. Landlords then enter into agreements with RIL. In that case, is it not possible, suppose they raise an argument saying that, therefore, it is not that there is a breach of the emergency arbitrator award because FRL has not surrendered it to RIL,” Justice C Hari Shankar mentioned on Monday. “FRL has surrendered to landlords which is not interdicted by the tribunal.”
Similarly, landlords in flip signed with RIL that can also be not restricted by the Singapore award, the court docket noticed. “So maybe by a roundabout way they (Reliance) got what they otherwise could not got. So simply speaking it is not a breach,” Justice Shankar mentioned throughout a listening to on Monday.
Amazon legal professionals have been arguing that an arbitral tribunal has restricted FRL from alienating its retail property until the arbitration centre provides its last verdict in the Amazon-Future Group dispute. Amazon had labelled the difficulty of February takeover of 835 of FRL shops by as a “sham transaction.”
In October 2020, an emergency arbitrator of the Singapore International Arbitration Centre (SIAC) has stayed the proposed sell-off of Future Group retail property to Reliance Retail.
Over the weeks, Amazon has been elevating the difficulty of Reliance’s February takeover of greater than 800 of FRL shops in the Delhi High Court. Reliance had taken possession of these shops for allegedly non-payment rents by Future Group for months to the unique lease holder Reliance Projects & Property Management that had sub-leases these shops to the Kishore Biyani-founded firm. Pehal News