Amazon wins a case in Supreme Court against the Reliance-Future Retail merger deal on Friday against the proposed Rs 24,713-crore merger deal.
The court said a Singapore arbitration panel’s decision to check Future Retail from going ahead with its deal with Reliance Retail was enforceable in India and Amazon wins the lawsuit in Supreme Court against Reliance-Future Retail merger deal when the Supreme Court on Friday ruled in favor of e-commerce giant Amazon in its legal battle against the proposed Rs 24,713-crore merger deal between Future Retail Limited and Reliance Retail.
One of the main questions asked in the case was about the legality and enforceability of a Singapore-based single-judge arbitration panel’s decision to restrain Future Retail Limited from moving ahead with its deal with Reliance Retail, under the Indian laws.
During Friday’s hearing, Justice RF Nariman said the Emergency Arbitrator’s decision could be enforced in India. “Emergency arbitrator’s award holds good under Section 17(1) of the Arbitration and Conciliation Act and single judge’s order for such award cannot be appealed under Section 37(2),” he added.
Background of Case
In August last year, the case sprang up after Future Group, led by Kishore Biyani, had agreed to enter the deal with Mukesh Ambani’s Reliance Retail, under which it would sell its wholesale, logistics, retail, and warehouse businesses. Amazon opposed the deal, arguing that according to a separate agreement it signed with a unit of Future Group in 2019, it could not sell its retail assets to a list of companies, including Reliance.
After this, Amazon had written to the market regulator Securities and Exchanges Board of India and the Competition Commission of India, asking them to take into consideration the Singapore arbitrator’s decision as it was a binding order and not allow the deal to go through.
Future Retail had then approached the Delhi High Court, seeking that Amazon should not interfere with the deal. Then on February 2, a single-judge bench of the High Court directed the statutory authorities to maintain the status quo on the proceedings of the deal, effectively barring its establishment.
However, the decision was overturned on February 8 by a two-judge bench of the High Court, which held that bodies like the National Company Law Tribunal, CCI and SEBI, cannot be restrained from proceeding in accordance to law with regard to the deal.
After this, Amazon had approached the Supreme Court challenging the Delhi High Court’s last order, saying it was illegal and arbitrary.
Finally today Friday, the Supreme Court ruled in favor of e-commerce giant Amazon in its legal battle against the proposed Rs 24,713-crore merger deal between Future Retail Limited and Reliance Retail.