Amid deal conflict, Future Group files caveat petition against Amazon

Amid deal conflict, Future Group files caveat petition against Amazon
Photo Credit: 123RF.com

Kishore Biyani-led Future Group has filed a caveat petition in the Delhi High Court, asking for an opportunity to be heard if ecommerce firm Amazon files a plea regarding the $3.38 billion Future-RIL deal.

“It’s a basic caveat that says two things -- if Amazon files a case in Delhi HC, Future Group needs to be informed and gets a chance to be heard before the court passes any order,” a person close to the development told TechCircle. 

According to the source, the caveat adds that if Amazon files a case and an order is passed in its favour without Future Group’s knowledge, then that order should be considered void.

A caveat petition is a precautionary measure taken by a litigant in high courts and the Supreme Court to ensure that no adverse order is passed against a party without allowing it to have a chance to be heard.

Amazon and Future Retail did not respond to TechCircle's request for comment. 

Earlier this week, Future Retail told stock exchanges in India to not take cognizance of the injunction order issued by Singapore International Arbitration Center (SIAC)-appointed emergency arbitrator to Amazon. 

In its filings with the BSE, Future Retail mentioned that Amazon has sought damages of $192 million along with interest for its investment in Future Coupons.

In the ongoing dispute, Amazon, which had approached the SIAC on October 5, was awarded an injunction on October 25 against the proposed acquisition of Future Group, including its retail, wholesale, logistics and warehousing operations, for $3.38 billion by Reliance Retail Ventures (RRVL), a subsidiary of Reliance Industries. 

Amazon had contended that the acquisition violates shareholder agreement between Future Retail and the Seattle headquartered ecommerce entity, which has an indirect shareholding in Future Retail through its 2019 investment in Future Coupons

Meanwhile, Reliance Industries has said that it would complete the acquisition of assets of Future Group under provisions of the Indian law. According to media reports, Reliance Retail Ventures (RRVL) is looking to file a countersuit against Amazon.