NEW DELHI: In a temporary relief to Amazon, the Delhi High Court on Tuesday dismissed Future Retail’s plea to declare the international arbitration proceedings with Amazon as illegal. Justice Amit Bansal of the Delhi High Court said the filings were dismissed, without giving any further details.
Kishore Biyani’s Future Group made the argument in light of the December order of the Competition Commission of India (CCI) that put in abeyance the approval given to Amazon’s 2019 investment in Future Coupons Private Ltd (FCPL).
On Dec 29th, Amazon had appealed Singapore International Arbitration Centre (SIAC) against the penalty levied by CCI. They argued that CCI’s order to put in abeyance the FCPL and Amazon deal does not fall in its remit. The CCI had put into “abeyance” its 2019 approval for Amazon’s investment in Future Coupons (FCPL) and imposed a `200 crore fine on the US company.
Future moved SIAC on December 31, asking that it terminate the arbitration proceedings and hear its plea of termination before the SIAC hears Amazon’s plea of penalty revocation. However, the plea was rejected by the tribunal. SIAC had said that it would go ahead with the arbitration case from 5th January and hear the termination plea only on 8th January.
The main arbitration case – deciding the legality of sale of Futures Retail (FRL) to Reliance Retail – along with Amazon’s plea against CCI penalty is to be heard from Jan 5. Against this, Future group had moved Delhi High Court requesting the court to ask SIAC to hear the termination plea ahead of the arbitration case. According to sources, Futures might approach the special two-judge bench of SC for relief. Though, Future Retail has denied any such move for now.
The dispute between Future group and Amazon is being fought on many fronts on different courts. While the hearing in the main arbitration case will begin on January 5 at SIAC, the Supreme Court will be hearing multiple SLPs (special leave petitions) related to this matter on January 11, 2021.
Amazon challenges CCI order in SIAC
Amazon had appealed Singapore International Arbitration Centre and said CCI’s order to put in abeyance the FCPL and Amazon deal does not fall in its remit