Post SC judgment, Future Retail to take legal recourse

In a major victory for US-based e-commerce giant Amazon, the Supreme Court on Friday held that Singapore’s Emergency Arbitrator (EA) award, restraining the Rs 24,731 crore merger deal of Future Retail Ltd (FRL) with Reliance Retail, is valid and enforceable under Indian arbitration laws. 

The apex court also set aside the two orders of February 8 and March 22 of the division bench of Delhi High Court order which lifted the single-judge’s orders staying the FRL-RRL merger. Amazon.com NV Investment Holdings LLC and FRL are embroiled in a bitter legal fight over the deal and the US-based firm has sought in the apex court that the EA award was valid and enforceable. 

A bench of justices R F Nariman and B R Gavai decided two important questions in the judgement -- whether an ‘award’ by an EA under the Arbitration Rules of the Singapore International Arbitration Centre (SIAC) can be said to be an award under Arbitration and Conciliation Act. The second question was “whether an order passed under Section 17(2) of the Arbitration Act in enforcement of the award of an Emergency Arbitrator by a Single Judge of the High Court is appealable.” Justice Nariman, in the 103-page judgment said: “We...answer the first question by declaring that full party autonomy is given by the Arbitration Act to have a dispute decided in accordance with institutional rules which can include Emergency Arbitrators delivering interim orders, described as “awards”. 

“Such orders are an important step in aid of decongesting the civil courts and affording expeditious interim relief to the parties. Such orders are referable to and are made under Section 17(1) of the Arbitration Act”.