Future-Amazon: The SC has overturned a Delhi HC ruling on an emergency award.

The Supreme Court, in a landmark victory for the Future group, overturned previous Delhi High Court decisions containing disparaging words and coercive action against the Future group on February 1. In Future Group's dispute with Amazon, the issue of enforcement of the emergency award has been remitted to the high court to be heard again on the merits.

The apex court bench, led by Chief Justice of India NV Ramana, was ruling on a slew of petitions filed by Future group companies regarding the enforcement of an emergency arbitrator's award issued under the Singapore International Arbitration Centre's rules, which barred Future group from proceeding with its Rs 25,000 crore asset sale deal with a wholly-owned subsidiary of Reliance Industries Ltd.

The Kishore Biyani-led group has appealed Delhi High Court decisions from February 2021 that called for the implementation of the emergency award, made disparaging remarks about the Future group's promoters, and ordered coercive measures against Biyani and other senior Future group management figures. 

While the Supreme Court today overturned the ruling relating to coercive measures and unfavourable statements, the matter of the emergency award's enforcement has been remitted to the high court and will be heard again, according to the court.

Amazon filed for arbitration after Future Retail announced an asset sale transaction with Reliance Industries Ltd's wholly-owned subsidiary, Reliance Retail, in 2020. Amazon argued that its agreement with Future Coupons barred Future Retail from entering into arrangements with specific organisations, including the Mukesh Dhirubhai Ambani group, in its capacity as a connected party. Future Retail stated that the arrangement between Amazon and Future Retail's promoter firm did not bind it.

An emergency arbitrator suspended the asset sale contract between India's two largest retailers in October 2020, and the Supreme Court maintained the validity of the ruling in August 2021. While the merger is on hold, Future Group filed a complaint with the CCI accusing Amazon of withholding critical information, resulting in a December CCI order that has now resulted in the Delhi High Court granting a stay on the arbitration procedures.

Also read : Marital ties may protect spouse from rape charges: Delhi HC