Amazon vs Reliance-Future Group: Supreme Court to pronounce verdict on Amazon and Reliance-Future Group dispute today.

Amazon vs Reliance-Future Group: Supreme Court to pronounce verdict on Amazon and Reliance-Future Group dispute today.

The emergency arbitrator in favor of Amazon had directed Future Group to put on hold the Rs 27,513 crore deal with Reliance Retail. Which was earlier challenged in the Delhi High Court.

Amazon vs Reliance-Future Group: Supreme Court to pronounce verdict today, Singapore’s arbitration decision valid or illegal?

Supreme Court to pronounce verdict on Amazon’s plea against Reliance-Future Group deal today.  This decision will also have an impact on Future Group’s deal with Reliance Retail.  The Supreme Court’s decision will decide whether an emergency arbitrator has the legal status of an arbital tribunal.  Can it be implemented?

 Is Future Group’s appeal maintainable before the Division Bench of Delhi High Court?  Amazon has challenged Future Group’s $3.4 billion deal with Reliance Industries.

The Supreme Court will pronounce its verdict today on Amazon’s petition against the Reliance-Future Group deal. This decision will also have an impact on Future Group’s deal with Reliance Retail. The Supreme Court’s decision will decide whether an emergency arbitrator has the legal status of an arbital tribunal. Can it be implemented? Is Future Group’s appeal maintainable before the Division Bench of Delhi High Court? Amazon has challenged Future Group’s $3.4 billion deal with Reliance Industries.

The emergency arbitrator in favor of Amazon had directed Future Group to put on hold the Rs 27,513 crore deal with Reliance Retail. Which was earlier challenged in the Delhi High Court.

US e-commerce giant Amazon.com NV Investment Holdings LLC and FRL are embroiled in a legal battle over this deal. Amazon has told the Supreme Court that the Singapore Emergency Tribunal’s (EA) decision restraining FRL from the merger deal with Reliance Retail is “valid” and should be implemented. The court will give its verdict today on whether Singapore’s Emergency Arbitration (EA) decision to stay the deal is valid and enforceable under Indian law.

Supreme Court to pronounce verdict on Amazon and Reliance-Future Group dispute today.

Let us tell you that on the petition against Future Group and Reliance deal, the Supreme Court had reserved the decision on Thursday. A bench of Justice RF Nariman had reserved the verdict after hearing both the sides. In the year 2019, Amazon gave $19.20 million to Future Group. Amazon had made this payment for a 49 per cent stake in the Gift Vouchers unit of the Future Group. Amazon has said on the basis of this deal that Future Group cannot sell its business to Reliance.

Amazon.com NV Investment Holdings LLC and FRL are locked in a bitter legal battle over the deal, and the US-based company has demanded in the Supreme Court that the EA award was valid and enforceable.

“We will decide whether the EA decision falls under section 17(1) of the Arbitration and Conciliation Act (which deals with an interim arbitral award issued by an arbitral tribunal). If so, whether it can be enforced under section 17(2) (of law)”.

The provisions of the law deal with temporary measures ordered by an arbitral tribunal, and Article 17(1) states: “Unless the parties agree otherwise, the arbitral tribunal may, at the request of one of the parties, grant to one of the parties can order. Take any interim measures of protection as the arbitral tribunal may consider necessary in relation to the subject of the dispute. “

Article 17(2) provides that the arbitral tribunal may request a party to grant reasonable protection in respect of the interim remedy requested.

The Supreme Court, which had earlier asked the National Company Law Court (NCLT) not to pass a final order regarding regulatory approvals for the FRL-RRL merger, began hearing the final arguments on July 20.

Salve, appearing for the FRL, noted the provisions regarding the validity and enforceability of arbitration awards, and said that there was no EA concept under the Indian Law on Arbitration and Conciliation and in any event, no EA to that effect. There was no arbitration agreement. .

SC to pronounce verdict on Friday on Amazon’s plea against Future Retail-Reliance deal.

There was no decision on the EA under Indian law and “it cannot be done through the manufacturing process,” Salvi said, referring to the Delhi High Court’s single judge order that held the EA’s decision to be valid.

Amazon had told the bench that Biyani of Future Group had negotiated certain agreements with it and is bound by an EA award that prevents FRL from going ahead with the Reliance Retail merger.

Subramaniam reiterated in his report that the EA award in favor of Amazon was valid and enforceable under the Arbitration and Conciliation Act of India.

“For the purposes of this Act, an arbitral tribunal shall include not only a three-member arbitral tribunal, but also an EA. Just because the word ’emergency’ does not exist (in the Act), it ceases to be an arbitrator under the Act,” he said, adding that the court here would enforce the arbitral award as per the provisions of the law.

Salve, in his commentary notes, said that the FRL stated that the EA does not have any adjudicating jurisdiction and the Delhi High Court cannot make it enforceable by making Indian law.

Kishor Bayani and 15 others including FRL and Future Coupons Pvt Ltd (FCPL) have been set up as parties by Amazon in a batch of appeals challenging the Delhi High Court order for the platform clause. paves.

On 8 February, the mega-deal continued the oath of office under the direction of a single judge to the FRL and various legal authorities to maintain the status quo.

The interim direction was passed in the FRL appeal to challenge the February 2 order of a single judge, which ruled in favor of the US company that EA’s decision was valid and enforceable.

Amazon first filed a suit in the High Court (Single Judge) to enforce the EA Award.

Amazon first filed a suit in the High Court (Single Judge) to enforce the EA Award issued by the Singapore International Arbitration Center (SIAC) on October 25, 2020, asking FRL to transact with Reliance Retail. stopped from.

However, the Supreme Court’s Supreme Court panel said it would uphold the single-judge order as FRL was not a party to the Share Membership Agreement (SSA) between Amazon and FCPL and the US company was not a party to the FRL-Reliance deal. Was.

FRL, in its appeal, claimed that if the February 2 order was not stayed, it would be a “complete disaster” for it as the proceedings before the NCLT for approving the merger plan were suspended.

It has claimed that the single judge status order will effectively disrupt the entire scheme which has been passed by the legal authorities in accordance with the law.

Amazon vs Reliance-Future Group: Supreme Court to pronounce verdict on Amazon and Reliance-Future Group dispute today.
Amazon vs Reliance-Future Group: Supreme Court to pronounce verdict on Amazon and Reliance-Future Group dispute today.

In August last year, Future Group had entered into an agreement to sell its retail, wholesale, logistics and warehousing units to Reliance.

Later, due to an alleged breach of contract by Future Group, Amazon took FRL to EA before SIAC.