The Future group stocks are under pressure today. Future Retail Ltd (FRL) went down 9% to Rs.70.55 while all the others – Future Consumer, Future Enterprise and Future Supply were locked at their 5% LCs.
The stock tanked after Amazon announced that it has won a favourable ruling for its plea in Sinpapore against the Future group striking a deal with Reliance Inds .
The Court has ruled that Future cannot proceed with the sale of its shares to RIL till the outcome of the arbitration process.
Future group announced today that it is examining the communication and the order. It may be noted that FRL is not a party to the agreement under which Amazon has invoked arbitration proceedings.
FRL has been legally advised that actions taken by the FRL / its board, which are in full compliance of the relevant agreements and eminently in the interest of all stakeholders cannot be held back in arbitration proceedings initiated under an agreement to which FRL is not a party.
As per the advice received by FRL, all relevant agreements are governed by Indian Law and provisions of Indian Arbitration Act for all intents and purposes and this matter raises several fundamental jurisdictional issues which go to the root of the matter. Accordingly, this order will have to be tested under the provisions of Indian Arbitration Act in an appropriate forum.
In any enforcement proceedings, FRL would take appropriate steps to ensure that the proposed transaction will proceed unhindered without any delay.