The Delhi High Court on Wednesday stayed the ongoing arbitration proceedings between the Future Group and Amazon. The interim order was passed by a division bench of Chief Justice DN Patel and Justice Jyoti Singh.
The order comes after Future Retail Ltd. and Future Coupons Pvt. appealed the decision of the single-judge bench of Justice Amit Bansal, who dismissed petitions by Future Group entities.
Future Coupons and Future Retail had sought a direction to the SIAC arbitral tribunal to first decide on their applications on termination of arbitration proceedings initiated by Amazon. The single judge, however, held that no prejudice will be caused to the parties if the tribunal hears the applications to end arbitration at a later date.
Today, the division bench issued notice on the appeals filed by Future Coupons and Future Retail, seeking replies by Feb. 1. In the interim, the stay order on the arbitration proceedings will operate.
The Singapore arbitral tribunal 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 its 2019 contract to invest in Future Coupons. 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.