Future Retail Limited, India on November 1, 2020, implored the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) to not ascribe any weight to the Singapore International Arbitration Centre’s (SIAC) interim stay order on its deal with Reliance Industries Limited (RIL).
Last week, the SIAC had issued an interim order requiring Future Retail to suspend its plan of selling its retail business to RIL until the final decision regarding the petition filed by Amazon, USA is delivered. Earlier in October 2020, Amazon had filed an arbitration claim before the SIAC arguing that Future Retail had breached the contract through which the former had purchased an indirect stake in the latter’s retail business in 2019.
Accordingly, in a communication to the stock exchanges, Future Retail requested them to not take notice of Amazon’s letter claiming that the public shareholders of the former are being misled. Future Retail further said that the SIAC arbitrator's order in the dispute cannot be enforced under Indian law and is therefore not binding on the company.
Indraneel Gunjal is an attorney from India and an advanced degree graduate from Stanford Law School, Class of 2020 with a specialization in International Economic Law, Business & Policy. Before joining Stanford, he worked with the Trade Policy Division of the Department of Commerce, Government of India where he was a member of the legal team representing India in its inter-state trade and investment disputes, Free Trade Agreement (FTA) negotiations, and also tasked with formulating and reviewing its trade policy.