In the case between Amazon and Future, the Delhi High Court has put the arbitration proceedings between two parties. The High Court has stayed a single judge's order that has dismissed the Future Group's two pleas for a direction to the arbitration tribunal, adjudicating Amazon's injections against the controversial deal with Reliance to decide on its application for terminating the arbitration proceedings before moving further.
In a bench consisting of the chief justice, DN Patel and Justice Jyoti Singh, they called it a case of prima facie in favor of Future Retail Ltd (FRL) and Future Coupons Pvt Ltd (FCPL). They concluded that if a stay is not granted, it might cause an irreparable loss to them.
"A stay on further proceedings of the arbitral tribunal till the next date of hearing is put and a stay on the single judge's January 4 order till the next date of hearing comes into effect," the bench commented while listing the hearing on February 1. The high court has given a notice to Amazon.com NV Investment Holdings LLC on the appeals filed by FRL and FCPL, challenging the single judge's order.
Amazon and the Future Group are engaged in many legal battles after the US e-commerce giant dragged the future Group to arbitration at the Singapore International Arbitration Centre (SIAC) in October 2020. Earlier, Amazon and Future group argued over discount policy.
In its claim, Amazon argued that FRL violated their contract by entering into a deal to sell its assets to Reliance Retail led by Mukesh Ambani on a slump sale basis for Rs 24,500 crore. As per the information from the Enforcement Directorate (ED), because of the pandemic, people's physical appearance in the court in connection is not insisted on its probe against an Amazon subsidiary under the Foreign Exchange Management Act (FEMA).
The oral confirmation was provided by Additional Solicitor General SV Raju representing ED, on petitions by Amazon Wholesale (India) Pvt Ltd and Amazon Seller Services Pvt Ltd, challenging the jurisdiction of the ED and its officers to investigate the first company and seek information about Amazon's ongoing arbitration with the Future Group.
In addition, Justice Rekha Palli listed the case for further hearing on January 12 and instructed the senior lawyer for the agency to "advise officers that if they want any information, they will do so through video conferencing."
"Due to COVID-19, the court may hold the hand (on the insistence on physical appearance)," said Raju.
Lawyer Amit Mahajan, representing the ED, confirmed that the agency would not ask any person connected with the petitioners to come to Delhi.
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