SC rules in favour of Amazon in dispute with Future Retail
SC ruled in favour of Amazon by stating that the Rs 24,731 crore merger deal of Future Retail Ltd with Reliance Retail, was bound by the EA award.
The Supreme Court has ruled in favour of e-commerce giant Amazon in the latter’s plea against the merger of Future Retail Ltd (FRL) with Reliance Retail. SC said the Rs 24,731 crore merger deal of Future Retail Ltd (FRL) with Reliance Retail, was bound by Singapore’s Emergency Arbitrator (EA) award. The apex court said that the restraining was valid and enforceable in accordance with the Indian laws.
The verdict resolved the question on the legality and enforceability of an award by an Emergency Arbitrator (EA) of the foreign country in India under the Indian Arbitration and Conciliation Act. This is because the term EA is not used in arbitration laws in India.
Justice Nariman said the top court has agreed with the findings of the single-judge of the Delhi High Court which had found the EA award in favour of the US firm to be enforceable in India.
“The EA Order is an order within section 17 (1) and can be enforced under Section 17(2) of the Arbitration and Conciliation Act,” the SC bench said.
The provisions of the Act deal with the interim measures ordered by an arbitral tribunal and section 17 (1) says: “Unless otherwise agreed by the parties, the arbitral tribunal may, at the request of a party, order a party to take any interim measure of protection as the arbitral tribunal may consider necessary in respect of the subject-matter of the dispute.” Section 17 (2) provides that the arbitral tribunal may require a party to provide appropriate security in connection with an interim measure ordered.
Amazon and Future had been embroiled in legal battles over the deal. The US-based firm had accused the Indian group of violating pre-existing contracts when it sold its assets to rival Reliance Industries.
The Future group had reached an agreement to sell its retail, wholesale, logistics, and warehousing units to Reliance.
Amazon had then sought in the apex court that the EA award was valid and enforceable.
The top court had reserved the judgment in the high-profile case on July 29 after hearing senior advocates Harish Salve and Gopal Subramanium, appearing for FRL and Amazon respectively.