Amazon seeks to make Reliance a party in FRL case

AMAZON HAS SAID THAT IT IS NOT READY TO GIVE UP THE 832 STORES OF FUTURE RETAIL THAT RELIANCE HAS TAKEN OVER

US retail giant Amazon on Thursday told the Delhi high court that it wants to make Reliance Retail Limited (RRL) a party to its ongoing legal dispute between US- retail giant Amazon and Future Retail Limited (FRL) over the control of around 800 retails shops in the country.

When senior advocate Gopal Subramanium, for Amazon, told Justice C Hari Shankar that they (Amazon) would want to take back the hold of all the retail shops, the court asked him whether Reliance should not be made a party to the proceedings.

“Since this alienation has been effected by Reliance...Let us say they (Future) has surrendered their tenancy to Reliance. Reliance is a beneficiary of this transaction. Please tell me how this application can be decided without Reliance being made a party,” Justice C Hari Shankar said. The court said that if the application is decided without the participation of Reliance, then it would be “arguing behind the back of a necessary party”.

Subramanium said that he has no objection in making Reliance a party to the proceedings but for that the court will have to pass orders. He said that the assets, which have been obtained by RRL, in breach of the injunction, have to be restored. “I agree that Reliance has to be brought here. There is no question about it. Reliance has the notice of the proceedings. It gave a disclosure on October 25, 2020 saying that it will still proceed with the transaction (with Future) notwithstanding the order of injuncmised tion,” the senior counsel said.

He also read out judgments to state that a third party will be liable for contempt of court if it knowingly assists in the breach of the injunction.

Saying that it is not ready to give up the 832 stores of FRL which have been taken over by Reliance, even if it pulled out of the deal with the former, the counsel urged the court to issue notice to Reliance and make them a party to the proceedings as quickly as possible.

He also sought that until Reliance is not called to the court, they should not be allowed to use the premises of these stores. “Nobody can use those premises…and please enjoin them to protect the interest of all concerned in the outcome of this petition,” Subramanium added.

However, senior advocate Dayan Krishnan, appearing for Future Coupons Private Limited (FCPL), objected to the suggestion of Reliance being made a party and said that they have their objections which would be argued. He said that senior advocate Harish Salve and Rajiv Nayyar, for the Future group would first argue, following which he would advance his submissions to oppose the joining of Reliance as a party to the proceedings.

The matter would be heard on May 4.