On Wednesday, the Supreme Court ordered Amazon and Future to petition the Singapore International Arbitration Centre to resume arbitration proceedings in a dispute over Future’s proposed 24,500 crore merger with Reliance. A three-judge bench led by Chief Justice of India N.V. Ramana overturned a Delhi High Court Division Bench’s January judgment halting the arbitral tribunal proceedings.
“The parties will approach the arbitral tribunal to resume the arbitration proceedings on the understanding that the arbitral tribunal may hear FRL’s [Future Retail Limited] termination application and termination applications filed by respondents [Future group companies] in priority to other matters, and pass orders,” the Supreme Court directed.
“Where the arbitral tribunal decides that the continuation of the arbitral proceedings has become unnecessary or impossible for any other reason,” reads section 32(2)(c), “the arbitral tribunal shall make an order for the termination of the arbitral proceedings.”
Supreme Court dismissed the case
While dismissing the case, Chief Justice Ramana said, “I trust there is no need for me to hear this subject again during my tenure.” After both parties agreed to resume proceedings before the Singapore International Arbitration Centre on April 4, the court asked them to present a common memo of consent terms (SIAC).
In March, Amazon and Future appeared to agree to the court’s recommendation that they approach the tribunal with a request to reopen the dispute’s proceedings.
Failure of negotiations
After failed efforts for a peaceful resolution of the matter, the offer to return to the tribunal was made. In March, Amazon and Future also agreed that they might ask the tribunal to hear and determine the termination claims under Section 32 of the Act on a priority basis.
“Our motion under Section 32 to discontinue the arbitration procedures was not taken up at the appropriate time in January, resulting in this entire controversy.” “All of these proceedings can come to an end if the tribunal can take our application in April,” Future’s senior counsel Mukul Rohatgi had stated. Amazon’s senior advocate Gopal Subramaniam had submitted, “The sooner we make the plea, the better.” As a result, the Supreme court ordered both parties to draught a joint memo at the last hearing on April 4.
“Both parties have stated and agreed that they wish to appear before the Singapore International Arbitration Centre and request that the proceedings, pending adjudication before it, be expedited on the issues agreed upon between them,” the Supreme Court wrote on April 4 while listing the case for disposition on Wednesday.