The Indian Supreme Court today ruled that Future Retail's $3.4-billion deal to sell its retail assets was bound by an October 2020 order by Singapore's Emergency Arbitrator (EA) that put the transaction on hold. Its partner Amazon had sought to block the deal. Amazon had accused the Indian group of violating pre-existing contracts when it sold its assets to Reliance Industries.
Amazon had argued that the order was binding, while Future, which denied any wrongdoing, had countered saying it was not.The Indian Supreme Court today ruled that Future Retail's $3.4-billion deal to sell its retail assets was bound by an arbitrator's order in October last year that put the transaction on hold. Its partner Amazon had sought to block the deal. Amazon had accused the Indian group of violating pre-existing contracts when it sold its assets to Reliance Industries.#
The court said the Singapore's EA order was valid in India, according to a news agency report. The court bench held that an award of an EA of a foreign country is enforceable under the Indian Arbitration and Conciliation Act despite the fact that the term EA is not used in arbitration laws here.
On July 29, the Supreme Court had reserved its judgment in Amazon’s appeal against a Delhi High Court order staying a previous order directing the attachment of properties of Future Group companies and Kishore Biyani in relation to the Future-Reliance deal.
The apex court had on February 22 barred a final ruling by a tribunal reviewing Future Group’s $3.4-billion sale of retail assets until the court heard objections from Amazon.
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