The Supreme Court on April 6 asked American e-commerce giant Amazon and India's Future group to approach the Singapore International Arbitration Tribunal (SIAC) governed tribunal for the resumption of the proceedings in a dispute between the two sides.
The bench headed by Chief Justice of India NV Ramana asked the SIAC tribunal to consider Future group's application seeking termination of the proceedings under the provisions of the Arbitration and Conciliation Act.
The top court was earlier informed that the two parties were in agreement on the issue of resumption of the arbitration proceedings. Their stand has been taken on record by the Supreme Court and a formal order issued.
Separately, the application for interim relief sought by Amazon to restrain alienation of Future Retail Ltd's (FRL) assets will be pressed before the Delhi High Court, the Supreme Court was told on April 6.
The single-judge bench entrusted to hear the entire batch of execution petitions in the Amazon-Future group legal dispute will first hear the application for execution of the arbitration awards passed thus far, which would in essence touch upon the issue of protecting FRL's assets.
The Supreme Court, as such, closed the case after passing the order for the resumption of arbitration and transmitting the application for interim relief to the Delhi High Court.
Also read: Amazon has destroyed us, Future Retails tells Supreme Court
"I hope we don't have to hear this case again," CJI Ramana said in a lighter vein at the close of the hearing.
In February, a division bench of the Delhi High Court had stayed the arbitration proceedings before the SIAC tribunal on a plea made by the Future group.
The court took note of the suspension of the Competition Commission of India's approval for a 2019 investment deal between Amazon and one of the Future group's firms. This investment agreement had formed the basis for invoking arbitration proceedings.
Amazon moved the Supreme Court and sought the resumption of arbitration proceedings.
Meanwhile, more than 830 of Future Retail's stores were taken over by Reliance Industries, which prompted Amazon to file an application seeking interim relief to restrain such alienation of properties until the time the legal dispute has concluded.
The making of the dispute
In 2020 as the brick-and-mortar retail industry took a big hit due to the coronavirus outbreak, Future Retail announced an asset sale deal with Reliance Industries for Rs 27,000 crore.
The Big Bazaar brand's parent company was on the brink of bankruptcy and the asset sale deal envisioned safeguarding jobs of thousands of employees besides facilitating Future Retail to pay back its debts, it was said.
This asset sale was stayed in October 2020 by an award passed by an emergency arbitrator after Amazon invoked arbitration proceedings before the Singapore International Arbitration Centre.
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In 2019, Amazon had entered into an investment deal with Future Coupons Pvt Ltd, which is one of the promoters of Future Retail. This investment deal provided for certain protective rights towards Amazon, including a bar on the Future group from doing business with certain restrained entities.
In light of Amazon's agreement with Future coupons, the e-commerce company objected to the asset sale. Arbitration proceedings were kicked off and led to a number of offshoots of the legal battle before a number of different forums.
Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.
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