The Delhi High Court dismissed the petitions by the Future Group seeking a direction to the SIAC arbitral tribunal to first decide on its application on termination of arbitration proceedings.
Counsel for Future Coupons Pvt. and Future Retail Ltd. had argued that the arbitration proceedings cannot go on in light of the competition regulator suspending the approval to the 2019 transaction. Amazon’s counsel resisted this, saying the arbitration agreement is an independent pact and it survives even when the underlying contract goes.
The high court on Monday declined FCPL and FRL’s plea to direct the SIAC tribunal to decide on their application to end the proceedings before resuming the hearings in the main case. The high court’s detailed order is awaited.
The three-member arbitral tribunal, constituted under Singapore International Arbitration Centre Rules, is hearing an arbitration dispute initiated by Amazon.com NV Investment Holdings alleging violation of contractual obligation by Future Coupons.
Amazon had initiated the arbitration arguing that the Future Group’s transaction with Mukesh Ambani-led Reliance Retail Ventures Ltd. violated the terms of the 2019 contract. Amazon had invested in the Future Group by acquiring a 49% stake in Future Coupons—a promoter entity of Future Retail.
The arguments on allegations of contractual violation took place in November and the arbitral tribunal is set to hear the parties on damages this month.
Meanwhile, the Competition Commission of India suspended its 2019 approval to the transaction between Amazon and Future Group. Amazon had failed to identify and notify strategic interest over Future Retail, the regulator had concluded.
Citing this order, the Future Group first approached the SIAC tribunal seeking termination of arbitration proceedings. Subsequently, Future Coupons and Future Retail approached the Delhi High Court requesting it to direct the SIAC tribunal to first decide the termination application.
The single-judge bench of Justice Amit Bansal had reserved its orders after hearing the parties on Monday.
