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Mumbai: In a major relief to the Future Group, the Delhi high court on Wednesday stayed Amazon’s arbitration proceedings in the Singapore International Arbitration Centre against the Kishore Biyani-led group.
The division bench has also put a stay on the 4 January single-judge bench order that dismissed the Future Group’s petition seeking quashing of arbitration proceedings that were initiated by Amazon in the Singapore tribunal.
The high court has issued notice to Amazon and will now hear the Future Group’s plea on 1 February.
A bench led by Justice D N Patel said that “Much has been argued by both side including on the maintainability. We will deal with all these issues on the returnable date. Meanwhile, we stay the proceedings of arbitral tribunal till next date of hearing. We also stay the order of single-judge. If no stay is granted it will cause irreparable damage to the appellants."
In its plea, the Future Group had challenged the Delhi High Court’s order that dismissed its petition seeking quashing of arbitration proceedings that were initiated by Amazon.
“Today's Delhi High Court Division Bench decision appears to be a setback for Amazon as the Court had held that there is a prima facie case in favour of Future Group and the balance of convenience also favoured Future Group. This is an interim order which will remain operational until the next hearing i. e 1st February 2022,“ said VK Unni, professor, IIM Calcutta.
He added that one relief for Amazon would be to go to the tribunal against the Competition Commission of India order.
Counsel appearing for Amazon also informed the court that it is likely to file an appeal against the CCI order.
"Regarding the December 2021 order of CCI which kept in abeyance Amazon's investment into Future Group, Amazon can appeal against the CCI order before NCLAT (National Company Law Appellate Tribunal) and Supreme Court. It appears that this dispute is not going to end soon and both the parties will use all the legal options available to them," said Unni.
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