Deferring its hearing on the plea for resumption of arbitration proceedings in the Singapore tribunal till Thursday (March 3), the Supreme Court on Wednesday asked the National Company Law Appellate Tribunal (NCLAT) to expeditiously decide Amazon’s appeal against the c’s (CCI) December 17 order that kept in abeyance its nod for the 2019 deal with the Future Coupons (FCPL).

A bench led by by Chief Justice NV Ramana noted that Amazon’s appeal against the Delhi High Court order that stayed arbitration proceedings initiated by it against Future Group, before the Singapore International Arbitration Centre, is in a way connected with the CCI’s order. Therefore, the outcome of the NCLAT’s decision becomes important for any further determination of the issue, it said. As the NCLAT is scheduled to hear Amazon’s case on the anti-trust regulator’s decision on February 25, the apex court posted the matter for further hearing on March 3.

After hearing both the sides, the CJI felt that it was better if proceedings in the NCLAT are expedited as the outcome of its decision will have bearing on other cases.

Senior counsel Gopal Subramanium, appearing for Amazon, said that it is in the best interest of all if the arbitration proceedings initiated by Amazon against Future Retail over the latter’s Rs 24,500-crore merger deal with Reliance Retail are “concluded expeditiously, so that everyone will know where they are”. However, senior counsel Mukul Rohatgi, appearing for Future Coupons, informed the judges the HC had halted the arbitration proceedings in view of the CCI’s order, the fate of which as of now remains uncertain. 

Future had argued that once the CCI suspended the approval to Amazon-FCPL deal, then the Amazon’s challenge against asset sale to Reliance Retail “no longer has legs to stand on”.

While staying the arbitration proceedings, the division bench of the HC on January 5 had said there is a “prima facie case” in favour of the Future Group firms in view of the CCI’s order and if the proceedings are not halted, this would cause an “irreparable loss” to the Biyani Group. The SIAC had rescheduled its hearing in the arbitration case for May after the HC had stayed its proceedings citing the CCI’s order that had suspended its clearance given to Amazon’s Rs 1,400 crore investment in Future Coupons.

The spat between Future Group and Amazon has been on since October 25, 2020 when the Singapore’s EA passed an interim order restraining FRL from going ahead with its deal with Reliance Retail. The two sides have been embroiled in a legal battle over Future Retail’s move to sell its retail assets to Reliance Retail for Rs 24,500 crore. Amazon, which had acquired an indirect minority stake in Future Group in 2019 for Rs 1,400 crore, has alleged that Future’s sale of its retail, wholesale, logistics and warehousing businesses to Reliance Retail breached its pre-existing contract, which included a right of the first offer and a non-compete clause.