The Supreme Court on Friday ruled in favour of e-commerce giant Amazon by holding that Singapore's Emergency Arbitrator (EA) award, restraining the Rs 24,731 crore merger deal of Future Retail Ltd (FRL) with Reliance Retail, was valid and enforceable under Indian laws.
A bench of Justices R F Nariman dealt with the larger question and 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.
The EA Order is an order within section 17 (1) and can be enforced under Section 17(2) of the Arbitration and Conciliation Act, it said. 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.
The Supreme Court's judgement on the special leave petitions filed by Amazon does not deal with the merits of the dispute between FRL and Amazon. The judgement has held that the interim award of SIAC emergency arbitrator is a binding order under section 17(1) of the Arbitration Act.
According to sources, FRL is expected to file a special leave petition against the order of J Midha before the Supreme Court and an appeal under section 37(2) of the Arbitration act against the EA’s interim award before the Delhi High Court and obtain appropriate reliefs to pursue the Scheme.
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