Supreme Court upholds Singapore arbitration court order on Reliance-Future Group deal to which Amazon filed its objection- International Court’s decision on Reliance-Future Group deal applies in India as well
The Supreme Court on Friday ruled in favor of e-commerce giant Amazon, saying the decision of Singapore’s emergency adjudicator to stay Future Retail Ltd (FRL)’s Rs 24,731 crore merger deal with Reliance Retail valid and enforceable under
A bench of Justice R F Nariman took note of the larger question and ruled that the decision of an emergency adjudicator (EA) of a foreign company is enforceable under the Indian Arbitration and Conciliation Act, notwithstanding the use of the word EA here in the arbitration laws. has not been done. “The order of the EA is an order falling under section 17(1) and is enforceable under section 17(2) of the Arbitration and Conciliation Act,” the bench said.
There was a dispute between Amazon.com NV Investment Holdings LLC and FRL over the deal and the US-based company had requested the top court that EA’s decision be held valid and enforceable. FRL had argued that EA arbitrator is not under Indian law, as the term is not mentioned here in law.
Legal battle may continue: The two companies did not immediately comment on the decision, although a legal expert who spoke on condition of anonymity said that Future Retail is expected to file a review petition against the order. Apart from this, the company can also appeal against the interim order of the EA before the Delhi High Court under Section 37(20) of the Arbitration Act to pursue its deal with Reliance.
The decision, he said, does not pertain to the merits of the dispute between FRL and Amazon. It has answered questions of law which are academic in nature. He said the judgment stated that the interim order of the SIAC emergency arbitrator is binding under Section 17(1) of the Arbitration Act. On July 29, the top court, appearing for FRL and Amazon, submitted senior advocates Harish Salve and Gopal Subramaniam along with other lawyers. After the hearing, the decision in this matter was reserved on July 29.
Amazon challenged the High Court’s decision: The US e-commerce giant had said that the EA decision of the Singapore International Arbitration Center (SIAC) is enforceable and a single bench of the Delhi High Court has given an interim verdict in its favor and stayed the merger.
Earlier on February 22, the Supreme Court in its interim order had asked the National Company Law Tribunal (NCLT) not to pass a final order on the merger. The Future Group had moved the tribunal for regulatory approvals for the Rs 24,713 crore deal with Reliance. At the same time, Amazon has challenged the order of the Division Bench of Delhi High Court in the Supreme Court. This paved the way for the Reliance-FRL deal.
It is noteworthy that there is an ongoing legal dispute between Amazon and Future Group. The American company filed a case against the Future Group in the Emergency Arbitration Tribunal in Singapore. Its contention is that the Indian company has breached the contract by entering into an agreement with rival Reliance Industries.
#Supreme #Court #upholds #Singapore #arbitration #court #order #RelianceFuture #Group #deal #Amazon #filed #objection #International #Courts #decision #RelianceFuture #Group #deal #applies #India