Amazon scores big win as Supreme Court stalls Future’s $3.4 bn retail deal

E-commerce giant Amazon secured a major relief from the Supreme Court of India on Friday after the apex court allowed the appeal filed by the firm against a Delhi High Court order staying attachment of properties of Future Group companies and Kishore Biyani in relation to the Rs 24,713-crore Future-Reliance deal.

The Bench of Justices Rohinton Fali Nariman and BR Gavai held that the order of an emergency arbitrator is enforceable in India, under Section 17(2) of the Arbitration Act.

“We have framed two questions and answered them as Emergency Arbitrator’s award holds good and can be enforced under Section 17(2). Appeal is allowed,” Justice Nariman said reading out the judgment, according to law platform Bar & Bench.

A Division Bench of the Delhi High Court had stayed an order passed by the single judge. They had directed the attachment of properties of Future Group companies and Kishore Biyani in relation to the Future-Reliance deal.

The single judge order of the high court had upheld the award of an emergency arbitrator, directed attachment of the properties and restrained Future Retail Limited from going ahead with the Rs 24,713 crore merger with Reliance Retail, according to Bar & Bench.

This order was subsequently stayed by a Division Bench, prompting the appeal by Amazon.

“We welcome the verdict of the Hon’ble Supreme Court of India upholding the Emergency Arbitrator’s award. We hope that this will hasten a resolution of this dispute with Future Group,” said an Amazon spokesperson on Friday.

Legal experts said that the Supreme Court has now finally ruled in favour of Amazon in its high profile and long-running dispute with Future Retail Limited over the FRL’s (Future Retail) merger deal with Reliance group.

“SC in its decision upheld the enforceability of the Emergency Award under Indian law. The case has witnessed back and forth action across the Delhi High Court, NCLT and the Supreme Court,” said Salman Waris, managing partner at technology law firm TechLegis Advocates and Solicitors.

There were primarily two questions framed by the court and answered, namely Emergency arbitrators order holds good under section 17(1) of the Arbitration and Conciliation Act and such award under section 17(2) cannot be appealed.

“This decision sends a very positive signal to international players and foreign companies reaffirming that their rights would be protected in India under Indian law and as such would have a long term impact on future investment deals and investors,” said Waris.