The Delhi High Court today dismissed the petition of Future Group that sought to quash the arbitration proceedings initiated by Amazon in Singapore. In its petition, Future Coupons had asked the high court to quash the proceedings on the grounds that the Indian competition watchdog has already suspended the Amazon-Future deal.
Justice Amit Bansal said that the filings were dismissed, without giving any further details. A written order will be released later today.
The high court had heard the matter and reserved its order yesterday. Ahead of the verdict, Future Retail shares rose 3.6% to close at Rs 51.80 on NSE.
Currently, a dispute between Future Group and Amazon is underway at the Singapore arbitration panel, but both sides have been fighting parallel cases in various courts to enforce or overrule certain decisions taken by the arbitrator.
On 18 December 2021, the CCI in its order had suspended its approval of Amazon’s deal with Future Coupons Ltd and asked the US-major to furnish additional documents.
CCI had imposed a fine of Rs 200 crores on the US giant for allegedly making “false and incorrect statements” while seeking approval for the deal between itself and Future Coupons.
Mukul Rohatgi, senior counsel representing Future Coupons, told the court that as per law an arbitrator must terminate the proceeding if it has become unnecessary, adding that the company had approached the tribunal for termination of proceedings after the anti-trust watchdog’s December order.
Rohatgi argued that the international arbitral tribunal was acting in a ‘perverse’ manner and that it had yet not passed any order in the matter.
Meanwhile, senior counsel Harish Salve on behalf of Future Retail Ltd said that Future Retail had been unnecessarily dragged in the matter even as the company was reeling under the pressure of bankruptcy.