The Supreme Court will hear on March 23 American e-commerce giant Amazon’s application seeking relief against the alienation of Future Retail’s shops and assets while the legal dispute remains pending.
The court was responding to an application filed by the American firm on March 16, a day after it raised the issue of Future Retail’s shops and assets being taken over by Reliance Industries. The court had allowed Amazon to file an application to seek relief.
After Amazon filed a 370-page application, a bench headed by Chief Justice of India NV Ramana said it would not be possible to pass orders on interim relief the same day as the court needed time to go through the document.
The court proposed that the arbitration proceedings before the Singapore International Arbitration Centre (SIAC) governed tribunal may resume, where Amazon could press for the relief.
While Future group’s counsel was agreeable to resumption of proceedings, Amazon pressed for interim relief even if the hearing were to resume.
“The tribunal has already granted protection (against alienation of Future group’s assets),” Amazon’s counsel Gopal Subramanium told the court.
“If there has been no adherence of the order passed in 2020 till now then there is no point to file another application before the tribunal.”
Future Retail’s counsel Harish Salve said the main petition before the court concerned resumption of arbitration proceedings. With all parties agreeing to go before the tribunal, the interim relief application also ought to be heard only by one forum. “It cannot be pressed here also (before SC) and before the tribunal also,” he said.
The top court will now hear the case on interim relief on March 23. Future group has been directed by the court to file its reply to Amazon’s application. No order was passed on the resumption of arbitration.
The Supreme Court is hearing Amazon’s plea seeking resumption of arbitration proceedings before the SIAC. The proceedings were stayed the Delhi High Court in February, which was challenged by the American company in the Supreme Court.
Earlier, the Supreme Court said the case for resumption of arbitration hinged on the validity of the order passed by the Competition Commission of India in December 2021.
The CCI had suspended its approval for Amazon-Future group deal. The Future group secured a stay on arbitration proceedings based on CCI order, while Amazon approached the appellate forum, challenging its validity.
The top court observed that the NCLAT’s decision on CCI order’s validity was crucial before it could proceed with the case.
Amazon proposed informal talks with the Future group to arrive at an amicable solution. The talks, however, failed, the court was informed. While the talks were on, many of Future group’s shops were taken over by Reliance Retail, which saw Amazon seek court’s intervention once again.
Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
