Delhi HC dismisses Future Group's plea for termination of Amazon arbitration

Justice Amit Bansal dismissed the plea of Future Group challenging two orders of Arbitral Tribunal. The plea had sought to issue direction to Arbitral Tribunal to immediately and forthwith hear, dispose of and pass order on the Termination Application of Amazon matter before the arbitration tribunal in Singapore.

The court on Monday reserved the order after hearing submission of both sides. The court was hearing petitions filed by Future Retail Limited and Future Coupons.

"There is nothing to suggest that the Arbitral Tribunal has denied equal opportunity to the parties or that the Arbitral Tribunal has not been accommodating towards requests of the petitioners. Mere fixation of tight timelines or denial of requests for adjournment by the Arbitral Tribunal or deciding the order in which the Arbitral Tribunal considers the applications filed by the parties cannot be reason enough to contend that the orders of the Arbitral Tribunal are perverse or lacking in inherent jurisdiction," the court said on Tuesday.

"Therefore, no exceptional circumstances or perversity have been demonstrated/made out in the petitions or during the hearing to warrant the exercise of jurisdiction by this Court under Article 227 of the Constitution of India," the court said.

"Furthermore, all rights and contentions of the petitioners with regard to the violation of any provisions of the statute as well as the arbitration being conducted in violation of the agreement would be open to challenge by the petitioners under Section 34 of the Arbitration and Conciliation Act," the court added.

In the petition filed by Future Retail Limited, the petitioner has preferred against the orders dated December 29, 2021, and December 30, 2021, passed by the Arbitral Tribunal in SIAC Arbitration Case No. 960 of 2020 (captioned Amazon.com NV Investment Holdings LLC v. Future Coupons Private Limited).

The petition sought to assail the impugned orders passed by a Delhi seated Arbitral Tribunal in an arbitration between the Petitioner, Respondent No.1 Amazon.com NV Investment Holdings LLC, and Respondent No.2 Future Coupons Private Limited.

Future Retail Limited has sought to issue an appropriate order or direction declaring that continuation of the Arbitration Proceedings in SIAC Arbitration Case No. 960 of 2020 (captioned Amazon.com NV Investment Holdings LLC v. Future Coupons Private Limited) is contrary to law.

The petition also sought to issue an appropriate order or direction quashing and setting aside the Impugned Orders dated 29 December 2021 and 30 December 2021 passed by the Arbitral Tribunal and to issue an appropriate order or direction directing the Arbitral Tribunal to immediately and forthwith hear, dispose of and pass order on the Termination Application.

Senior advocate Mukul Rohatgi was appearing for Future Coupons and Senior Advocate Harish Salve is appearing for Future Retail.

Senior Advocate Gopal Subramaniam, who was representing Amazon submitted that it would be unfair to submit that the Arbitration Tribunal was not willing to hear the termination application. He further submitted that in fact, it has accommodated the petitioners and gave them the opportunity.

Amazon and FRL are embroiled in a legal fight over FRL's Rs 24,713 crore merger deal with Reliance Retail. Amazon has a 49 per cent stake in FCPL, which in turn owns a 9.82 per cent stake in FRL. Amazon's contention is that it has invested Rs 1,431 crore in FCPL on the clear understanding that FRL would be the sole vehicle for its retail business and its retail assets would not be alienated without consent and never to a Restricted Person.

FRL, on the other hand, has objected to the enforcement of the EA award saying that it is not an order under Section 17(1) of the Arbitration and Conciliation Act and hence not enforceable in India. However, later the top court said the EA award is enforceable in India.

FRL has contended that the Rs 24,731 crore deal was very important to save its 25,000 employees. It had said that as per the deal, Reliance will not only take over FRL's shops but also all its liabilities. (ANI)