[Amazon v Future] Talks failed; Reliance taking over Future assets: Supreme Court told

The Supreme Court was told on Tuesday that talks between Amazon and the Future companies had failed, and that Reliance was taking over the assets of the latter..A Bench of Chief Justice of India NV Ramana and Justices AS Bopanna and Hima Kohli was hearing Amazon's challenge to the Delhi High Court order staying proceedings before a Singapore International Arbitration Centre (SIAC) tribunal in relation to the e-commerce giant's 2019 deal with Future Coupons..When the matter was heard today, Senior Advocate Gopal Subramanium, appearing for Amazon, revealed that there was no headway in the mediation between the two parties. He also informed the Court that "something else" was happening instead."We have heard that NCLT proceedings can go on and no asset take over will happen. But even as this Court ordered to keep hands off, it has been taken over by Reliance. Message should not go that Court orders are being flouted.Now leases have been changed and Reliance has been landlords. If a party knows about the injunction and even then violates it, then he is equally to be proceeded against obstruction of justice. Please hear these matters.".Senior Advocate Harish Salve, appearing for Future Coupons, told the Court that Solicitor-level conversations happened and some offer was made by Future Group Chairman Kishore Biyani, but nothing came out of it.CJI Ramana then said,"So we have to decide whether the stay on arbitration proceedings before SIAC can continue or not. Also, how did your client take away the stores etc?"Salve explained that nothing has been transferred. "Rents have not been paid for 2 years. Landlords terminated leases and we had no money to pay them. Reliance signed up with landlords. We were in no position to pay.We are broke, we have no money. Amazon is driving us to the knees. That is where we find ourselves. A large amount today is owed to Reliance. We had no money to give them... we can harp on glory and grandeur, but when we are broke, we are broke," Salve said. .The Court expressed that proceedings before the arbitrator were not amounting to anything, and that if it adjourned the matter, it would be taking a lenient view.Subramanium then pointed out, "There is a disclosure to stock exchange that Reliance has taken over stores after Chief Justice passed an order."Salve replied, "Not a single store has been surrendered. Reliance came and overnight removed the boards as law permits. Only the lease and license agreement has been forfeited. This litigation has driven us to bankruptcy."He added,"Reliance is acting outside the litigation. Reliance is taking over (Future assets) since I have been driven to my knees. What do we do? We will put this on affidavit.".The Court then asked Future Coupons to reply to the application filed by Amazon by tomorrow, when the matter will be heard again..On the last date of hearing on March 3, the Court had asked Amazon and Future to come to a "gentleman's agreement" out of court..[Amazon v Future] No one is winning this battle: Harish Salve as Supreme Court calls for "gentleman's understanding".On January 5 this year, a Division Bench of the Delhi High Court had stayed the arbitration proceedings between Amazon and Future. It had also stayed the order of the single-judge which had refused to intervene in the matter and dismissed the pleas filed by the two subsidiaries of the Future Group.An arbitration tribunal in Singapore had been hearing Amazon's case against Future Group related to the 2019 deal between the two companies. While hearing this case, the tribunal had passed an interim order stalling the sale of Future Retail's assets to Reliance Industries.Future Retail had petitioned the tribunal, arguing that continuing proceedings there would be illegal in view of the CCI ruling against Amazon.The CCI had suspended the clearance for the deal, stating that Amazon had failed to notify it about certain crucial details of its acquisition of a 49 per cent stake in Future, as required under Section 6(2) of the Competition Act, 2002 (Act). It had, therefore, also imposed of a penalty of ₹202 crore on Amazon. This order is under challenge before the NCLAT.After the tribunal refused to consider the request before starting a final hearing, the Future Group moved the Delhi High Court. This led to the single-judge order that was eventually stayed by the Division Bench. Amazon subsequently moved the Supreme Court in appeal against this order.