Amazon urges SC to execute SIAC order
Press Trust of India
Singapore’s Emergency Arbitrator (EA) award, restraining Future Retail Ltd (FRL) from going ahead with its ₹24,713 crore merger deal with Reliance Retail, is “valid” and needs to be executed, Amazon on Tuesday told the Supreme Court which commenced hearings on its pleas against the amalgamation.
A bench comprising justices R F Nariman and B R Gavai started hearing the arguments from senior advocate Gopal Subramanium, appearing for Amazon.com NV Investment Holdings LLC, who apprised the apex court of the facts and legal proceedings so far in the case.
The Us-based e-commerce giant said the EA award of Singapore International Arbitration Centre (SIAC) was enforceable and the single-judge bench of the Delhi high court rightly gave an interim order in its favour granting a stay on the ongoing amalgamation.
Subramanium said a division bench of the high court erred in entertaining the Future group’s appeal and granting it relief by paving the way for the deal.
Assailing the order, the senior counsel for Amazon said, “the emergency arbitrator (EA) is not a ‘coram non judice’ (not before
NEW DELHI:
a judge)” and hence the award of EA is enforceable and the high court under a provision of the Arbitration and Conciliation Act has to act to execute it and not sit in appeal against the interim award. The top court would recommence hearing on the pleas either on Thursday or next Tuesday.
On February 22, in its interim order the apex court had asked the National Company Law Tribunal (NCLT) not to pass the final order on the amalgamation.
The Future group had moved the tribunal seeking regulatory approvals to the ₹24,713 crore deal with Reliance.
Amazon moved the top court against the order of the Delhi High Court division bench which paved the way for the Reliancefrl deal.
On February 8, the division bench had stayed the singlejudge direction to FRL and various statutory authorities to maintain the status quo on the mega deal.
The interim direction was passed on FRL’S appeal challenging the February 2 order of the single judge.
In August last year, the Future group had reached an agreement to sell its retail, wholesale, logistics, and warehousing units to Reliance.
Subsequently, Amazon took FRL into EA before the SIAC over alleged breach of contract by the Future group.
Amazon had first filed a plea before the high court (single judge) for enforcement of the October 25, 2020, EA award by SIAC restraining FRL from going ahead with the deal with Reliance Retail.