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Future Retail-Reliance merger: SC notice to Future Group on plea of AmazonAmazon and the Future Group are engaged in the legal battle for over a year as the US major is opposing the merger of FRL with Reliance Retail
Ashish Tripathi
DHNS
Last Updated IST
A bench comprising Chief Justice NV Ramana and Justices AS Bopanna and Hima Kohli issued notices to the Future Group firms and listed the plea for hearing on February 23. Credit: PTI Photo
A bench comprising Chief Justice NV Ramana and Justices AS Bopanna and Hima Kohli issued notices to the Future Group firms and listed the plea for hearing on February 23. Credit: PTI Photo

The Supreme Court on Wednesday issued notice on a plea by Amazon against a division bench order of the Delhi High Court, which stayed the ongoing arbitration proceedings with the Future Group, in connection with the 2019 deal between the firms.

A bench presided over by Chief Justice N V Ramana sought a response from the Future Group. The court fixed the matter for hearing on February 23.

On January 5, the Delhi High Court stayed further arbitration proceedings between the parties before the Singapore tribunal till February 1.

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The High Court had stayed the single judge order, which dismissed the Future Group's plea against the two orders passed by the tribunal. The Future Group sought termination of the arbitration proceedings instituted by Amazon.

The HC, relying upon the Competition Commission of India (CCI) order, said that there was a prima facie case made out in the favour of appellants.

Senior Advocate Mukul Rohatgi, representing the Future Coupons Pvt Ltd, contended that since the CCI order kept in abeyance the approval granted for Amazon’s deal with Future Group, the agreement automatically lost its value.

Senior advocate Gopal Subramanium, appearing for Amazon, claimed that it was not fair to say that tribunal was not taking cognizance of application to terminate the arbitration proceedings.

In December last year, the Competition Commission of India (CCI) had imposed a penalty of Rs 202 crore on Amazon and suspended its approval for the e-tailer's deal with Future Coupons, a promoter firm of the group's public listed company Future Retail Ltd, seeking more information. The Singapore tribunal had held that it could not accommodate its termination application ahead of the scheduled hearings on the main case.

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(Published 09 February 2022, 12:47 IST)