The Singapore International Arbitration Centre (SIAC) has extended the interim ruling, which was in Amazon’s favor and valid for 90 days till January 23. It had stayed the Future-Reliance deal in an emergency order on October 25. A source said that once the arbitration tribunal is constituted, as per SIAC rules, the emergency arbitration order gets extended till further modified by the arbitration tribunal. Reports stated that the tribunal at SIAC was formed recently and now, the final hearing is expected to start on the dispute. Moreover, analysts points out that in such disputes, one of the parties typically approaches the arbitrator for modifying the interim order. However, this hasn’t happened in the Amazon-Future case over the Rs 24,713 crore Reliance deal. A source said that if the final tribunal was also not formed, the emergency order would have expired after January 23.
Amazon has relied on the SIAC emergency order to write to Indian regulators urging them to consider the same before giving any approval to the Future-Reliance deal. While the SIAC tribunal is expected to start its proceedings, the Delhi High Court is slated to hear the global e-commerce giant’s appeal against the initial high court order next month. Amazon has moved the court in an effort to block the Future Group from selling retail assets to Reliance Industries that had received a green light from market regulator SEBI. In its argument, the international etailer said the interim injunctions granted by the Emergency Arbitrator (EA) are enforceable under the Indian laws under the Arbitration and Conciliation Act as the order is deemed to be an order of the Court, and is enforceable under the Code of Civil Procedure. Amazon wants the Court to issue an injunction against the respondents – Future Group, in light of the directions passed by the EA, from relying upon any approval granted by any regulatory body or agency in India arising out of any application initiated or pursued by the respondents, contrary to the directions in the Order, including without limitation, the no objection granted by SEBI and as also approvals granted by the BSE, NSE and CCI.
Furthermore, Amazon in its petition contended that the interim order is binding and if Future went ahead with the transaction, it would cause not only irreparable loss and injury, but also vitiate Amazon’s entire investment into Future Coupons. It also requested the High Court to issue injunction order restraining the Future Group from filing or pursuing any application before any person, including regulatory bodies or agencies in India, or requesting for approval at any company meeting of the companies, including Future Coupons, Future Retail, Future Coupons Resources Ltd and Akar Estate and Finance. In addition, the international company alleged that majority of the respondents, which includes Future Group firms as Future Coupons, Future Retail and promoters including its group CEO Kishore Biyani have deliberately and maliciously disobeyed the order passed by the EA, without even challenging it in accordance with law. Amazon highlighted that such action of simply ignoring the order and continuing with the transaction with RIL is not only contumacious, but calls into serious question their respect for enforceability of contracts, the rule of law, and the administration of justice, including the arbitral process.
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