SUMMARY
Future Group moved the High Court last month, arguing that there was a "stark abdication of jurisdiction" by SIAC
The High Court said that the arbitration proceeding before SIAC will continue uninfluenced by any of the findings or contentions raised
Amazon and Future Group have been involved in a legal tussle for over a year now following the latter’s unsuccessful bid to sell its retail assets to Reliance Retail
The Delhi High Court on Tuesday (November 22) reportedly dismissed Future Group’s plea that sought termination of the arbitration proceedings initiated by ecommerce giant Amazon before the Singapore International Arbitration Centre (SIAC).
Future Group moved the High Court last month, arguing that there was a “stark abdication of jurisdiction” by SIAC.
Justice C. Hari Shankar was quoted as saying that the arbitration proceedings before SIAC will continue uninfluenced by any of the findings or contentions raised. This paves the way for Amazon to continue its legal proceedings against Future Group before SIAC, which is set to start on November 28.
Earlier this month, Amazon moved the Supreme Court to allow the proceedings to continue as Future Group had filed over 200 petitions to stop Amazon from going to the SIAC.
The SC bench, comprising CJI DY Chandrachud, Justices Hima Kohli and JB Pardiwala, also passed an order to continue with the proceedings. “You cannot keep stultifying the proceeding before the arbitral tribunal. This is just a ploy by well-heeled parties to delay the arbitration proceeding,” the apex court said.
Justice Chandrachud also said that the “sanctity” of an arbitral tribunal, that too an international one, must be maintained.
Amazon and Future Group have been involved in a legal tussle for over a year now. It started in August 2020 after the latter announced plans to sell its retail business Future Retail to Reliance Retail for INR 24,713 Cr, citing bankruptcy.
Amazon started the legal battle as it had an INR 1,400 Cr investment, or 49% stake, in Future Coupons, a Future Group subsidiary. Amazon claimed that as per its agreements with Future Group, the latter cannot “sell retail assets to certain companies, including Reliance”.
Ever since, both Amazon and Future Group have filed multiple petitions against each other. Following the Future Retail-Reliance Retail deal announcement, Amazon initiated arbitration proceedings at SIAC to block the deal.
In December last year, the Competition Commission of India (CCI) also temporarily suspended the Amazon-Future Coupons deal.
However, Reliance called off the INR 24,713 Cr deal with Future Retail in April this year following a majority of the latter’s secured creditors voting against it.
Meanwhile, Reliance took over Future Group’s Big Bazaar and rechristened them Smart Bazaar(s).
