Future Group, Amazon Agree to Start Talks for an Out-of-Court Settlement

Future Group and Amazon, US e-commerce giant, on Thursday agreed to start dialogues to find a out-of-the-court solution of months-long dispute over sale of Future’s retail business.  Gopal Subramanium, senior counsel representing Amazon, proposed before the apex court on Thursday that the parties hold informal talks without mediators to thrash out a settlement. “Let us put our hands together and find a solution,” he said.

Future Group did not oppose his proposition. “Now if he has seen the light of the day and he wants to have a conversation, what prevents the big boss from Amazon calling up Mr (Kishore) Biyani,” Harish Salve, senior counsel who was arguing for one of the Future group firms, replied.

The Supreme Court on Thursday was hearing a plea by Amazon against a Delhi High Court’s stay order on proceedings before a Singapore arbitral tribunal against Future group’s proposed deal worth Rs 24,713 crore with Reliance industries.  “We feel instead of all these proceedings do you want a dialogue or want a mediation kind of a thing?” a bench led by chief justice N V Ramana said.

The apex court gave 12-day time for both the groups to arrive at an amicable solution to the ongoing dispute. The three parties involved in this are Amazon.com NV Investments Holdings LLC, Future Retail Ltd (FRL) and its promoter Future Coupons Pvt Ltd (FCPL).

“We will simply adjourn the matter for 10 days….. Meanwhile, work out by gentleman’s understanding. It will be better in interest of business,” chief justice added.

The Supreme Court is likely to hear the case next on March 15.

The Supreme Court also said the proceedings in the Delhi High Court and the National Company Law Appellate Tribunal (NCLAT) could go as scheduled.

Salve, said that there has been a news report that Amazon is likely to file criminal proceedings against Future Group, for allowing transfer of assets to Reliance Industries, despite a legal prohibition. Amazon counsel clarified that the news report was incorrect. He also assured that Amazon will not go ahead with any such criminal proceedings.

This came after Reliance Industries has stepped in to take operational charges of of Future Group’s retail stores earlier last month.

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