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Amazon asks SEBI, stock exchanges not to grant no-objection to Future Retail deal
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SME Times News Bureau | 12 Jan, 2021
Amazon has written to SEBI Chairman Ajay Tyagi informing that the
regulator should not give no-objection to the Future Retail transaction
with Reliance as the Singapore International Arbitration Centre (SIAC)
has constituted an arbitral tribunal.
In a letter to Tyagi,
Amazon.com NV Investment Holdings said, "We write to inform you that the
Singapore International Arbitration Centre (SIAC) has constituted the
arbitral tribunal in the arbitration proceedings initiated by Amazon
against inter alia FRL, Kishore Biyani and Rakesh Biyani.
"We
wish to highlight that in view of the constitution of the arbitral
tribunal, the interim award passed by the EA stands automatically
extended for the duration of the arbitration proceedings unless it is
reconsidered/modified/vacated by the arbitral tribunal."
"We wish
to highlight Rule 10, Schedule I to the rules of the SIAC, 2016 (SIAC
Rules) in this regard, which provides that: 'The Emergency Arbitrator
shall have no power to act after the Tribunal is constituted. The
Tribunal may reconsider, modify or vacate any interim order or Award
issued by the Emergency Arbitrator, including a ruling on his own
jurisdiction. The Tribunal is not bound by the reasons given by the
Emergency Arbitrator. Any interim order or Award issued by the Emergency
Arbitrator shall, in any event, cease to be binding if the Tribunal is
not constituted within 90 days of such order or Award or when the
Tribunal makes a final Award or if the claim is withdrawn'," Amazon
said.
Future Retail stands injuncted from proceedings with the transaction with Reliance and restrained by the award.
"We
reiterate that FRL continues to be expressly injuncted and restrained
by the interim award from taking any steps in furtherance of or in aid
of the impugned transaction, including filing or pursuing any
application before any person, including SEBI or agencies in India. As
the interim award is deemed to be an order of the court and now stands
automatically extended pursuant to the SIAC Rules, FRL continues to
suffer from a fatal disability to pursue its application for issuance of
observation letter/no-objection letter before any regulatory
authority," Amazon said.
The impugned transaction as per the
letter is the purported resolution dated August 29, 2020 (Impugned Board
Resolution) passed by the board of directors of FRL approving the
amalgamation of FRL, along with other group companies, with Future
Enterprises Limited (FEL) and the subsequent transfer and vesting of the
eretail and wholesale undertaking' from FEL as a going concern on a
slump sale basis to the Mukesh Dhirubhai Ambani (Reliance Industries)
Group.
In view of Section 17(2) of the Arbitration and
Conciliation Act, 1996, the interim award passed by the EA is deemed to
be an order of a court under the Code of Civil Procedure, 1908, and
continues to be in force, it said.
"We extract Section 17(2) for
your convenience: '(2) Subject to any orders passed in an appeal under
section 37, any order issued by the arbitral tribunal under this section
shall be deemed to be an order of the court for all purposes and shall
be enforceable under the Code of Civil Procedure, 1908 (5 of 1908), in
the same manner as if it were an order of the Court'," it added.
It
is a matter of record that no appeal under Section 37 of the
Arbitration and Conciliation Act, 1996 has been filed against the
interim award.
"In view of the directions in the operative part
of the interim award and the above, we request your good offices to take
action by inter alia: (a) suspending review of the impugned transaction
as well as the scheme involving the impugned transaction, and not
granting any no-objection in relation to the same; and (b) directing the
Indian stock exchanges not to issue any no-objection/approval letter to
FRL," Amazon said.
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