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Supreme Court of India Issued Notice on Amazon’s Plea Against Delhi High Court’s Stay on Singapore Arbitration Proceedings with Future Group

Supreme Court of India Issued Notice on Amazon’s Plea Against Delhi High Court’s Stay on Singapore Arbitration Proceedings with Future Group

On 9th February 2022, the Supreme Court of India issued notice to Future Retail Ltd. and Future Coupons Pvt. Ltd. on the special leave petition filed by Amazon against the Order of Delhi High Court that had stayed the arbitration proceedings taking place in Singapore between Amazon and Future Group till 1st February 2022. The petition is now listed for hearing on 23rd February 2022.

Background

Amazon had invested Rs. 1431 crores in Future Coupons Pvt. Ltd. (FCPL) based on certain special, material protective/negative rights available to FCPL in Future Retail Ltd. (FRL). Specifically, the retail assets of FRL would not be alienated without Amazon’s prior written consent and never to a Restricted Person. FCPL and FRL further agreed that FRL would remain the sole vehicle for the conduct of its retail business. The entire investment of Rs. 1431 Crore was invested by FCPL into FRL. FRL received the benefit of Amazon’s entire investment of Rs. 1431 Crore.

Thereafter, in August 2019, three Agreements were entered into and it was observed that Future Group had begun breaching the Agreements by permitting their shareholding in FRL to get further encumbered. On 29th August 2020, a transaction relating to the transfer of FRL’s assets to Mukesh Dhirubhai Ambani Group (MDA) was approved, despite the fact that MDA was a Restricted Person as per FCPL-SHA ( Disputed Transaction).

On 5th October 2020, Amazon initiated Arbitration proceedings as per the Arbitration Clause and according to the Rules of Singapore International Arbitration Centre (SIAC).

However, on 5th January 2022, the Delhi High Court had passed an Order staying the arbitration proceedings between the parties before the Singapore Arbitral Tribunal till 1st February 2022. Aggrieved, by this Order of the Delhi High Court, Amazon preferred a special leave petition before the Supreme Court contesting that the Order was in violation of the provisions and purpose of the Arbitration and Conciliation Act as arbitration requires party autonomy and minimal judicial interference.

 

 

 

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