The Supreme Court of India on Wednesday allowed the resumption of arbitration proceedings between Future Group and Amazon.com NV Investment Holdings LLC.
The top court passed the order after both sides agreed to resume proceedings at the Singapore International Arbitration Centre. The top court bench, presided by Chief Justice of India NV Ramana, also asked the arbitration tribunal to first decide on the Future Group plea seeking to terminate the arbitration proceedings.
The Future Group had filed the plea to terminate the arbitraiton proceedings after the Competition Commission of India suspended its 2019 approval for the transaction between Future Coupons Pvt. and Amazon.
Since the competition regulator had revoked its approval to the 2019 deal, the arbitral tribunal should hear the application to end arbitration first before hearing in the main matter could proceed, Future Group entities had argued.
The single-judge bench of the high court declined to interfere in the proceedings. But the division bench, in an interim order, found a prima facie case in favour of the Future Group and stayed the arbitration proceedings. Amazon challenged the stay in the Supreme Court.
On Wednesday, the apex court allowed the SIAC proceedings to continue, with CJI Ramana remarking, "I hope I don't have to hear this case again."
The Singapore arbitral tribunal is hearing an arbitration dispute initiated by Amazon alleging violation of contractual obligations by Future Coupons. The U.S. ecommerce major had initiated the arbitration on grounds that Future Group's transaction with Mukesh Ambani-led Reliance Retail Ventures Ltd. violated the terms of its 2019 agreement.
Amazon had purchased a 49% stake in Future Coupons—a promoter entity of Future Retail. Through the deal, it also got certain protective rights against any Future Retail asset sale.
Separately, Delhi High Court is hearing Amazon's request for an interim order halting the transfer of Future Retail's assets to Mukesh Ambani's Reliance Retail.
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