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Supreme Court HIGHLIGHTS: Bench holds Singapore's EA award in favour of Amazon against Future Retail-Reliance Retail deal enforceable

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Supreme Court HIGHLIGHTS: 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.

Supreme Court HIGHLIGHTS: Bench holds Singapore's EA award in favour of Amazon against Future Retail-Reliance Retail deal enforceable
  • SC Judgment – Division bench order of Del HC which had allowed for Future Retail to progress have been stayed.

    SC judgment upholds single judge bench order, which had directed attachment of assets of Biyani, Future Retail Directors.

    IMP – No appeal lies under Sec 37 of Arbitration Act against the HC order for enforcement of EA order.

  • Thank you, readers! That's all from our side in Supreme Court's verdict in the Amazon-Future Group deal case
     

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  • The Amazon-Future case has been among the most closely tracked case in the retail space recently. As the saga potentially sees a close, tracks how the case has unfolded in the last 1-2 years.

  • Amazon welcomes SC verdict

    Amazon spokesperson: “We welcome the verdict of the Hon’ble Supreme Court of India upholding the Emergency Arbitrator’s award. We hope that this will hasten a resolution of this dispute with Future Group.”

  • Amazon-Future Case | Supreme Court holds that the Emergency Arbitrator order is enforceable

    Do note, Emergency Arbitrator Order had directed for a stay on the Future Retail deal

  • Future group stocks tumble following Supreme Court's ruling in the Amazon-Future case

  • Amazon vs Future – Here are the salient points from today's Supreme Court verdict

    SC judgment confined to the enforceability of Emergency Arbitrator Order

    SC Judgment does not deal with the merits of the Future Retail, Amazon Dispute.

    Emergency Arbitrator order has been held to be enforceable.  

    Emergency Arbitrator order can be challenged in Indian High Court.

    Future Retail is likely to move the Del HC to challenge the Emergency Arbitrator Order.

    Emergency Arbitrator had directed for a stay of the Rs. 25, 000 crore Future Retail Deal.

    READ MORE

  • Deep Dive – CNBC-TV18’s Ashmit Kumar gives a timeline of the Amazon vs Future case

    Chronological Order -

    In 2019, Amazon bought a 49% stake in Future Coupons, Future Retail was a step-down subsidiary of Future Coupons.

    In Aug 2020, the Board of FRL approved deal Rs. 25,000cr deal with Reliance

    In Oct 2020, Singapore-based Emergency Arbitrator passed interim orders restraining FRL from proceeding with the deal.

    In Dec 2020, Future Retail moved Del HC in a suit, sought to restrain Amazon from writing to regulators.

    In Dec 2020, Single Judge Bench of Del HC (Justice Mukta Gupta) held that prima facie Amazon's conduct was that of tortious interference, that FRL board resolution was valid, that Amazon was potentially in violation of FEMA (Amazon appealed against this order. Amazon appeal is still pending before division bench of Del HC)

    In Jan 2021, Amazon moved Del HC, sought enforcement of Singapore-based Emergency Order staying the Future Retail Deal.

    On Feb 2, 2021, Single Judge Bench headed by Justice Midha issued INTERIM directions for "status quo" on Future Retail Deal to "protect" Amazom. On the very next day, Future Retail moved the division bench of Del HC to reverse the INTERIM status quo order.

    On Feb 8, 2021, Division Bench of the Del HC granted relief to FRL, overturned the INTERIM order of Justice Midha granting "status quo" on the deal.

    On Feb 11, Amazon moved the Supreme Court against the Division Bench order of Del HC, lifting the INTERIM status quo

    On Feb 22, Supreme Court allowed for FRL to proceed with a plea for a nod before NCLT, restrains NCLT from finalizing orders sanctioning the deal.

    Mar 18 – Justice Midha led bench of Del HC, passed final orders, confirms the interim order that EA order needs to be complied with. Further states that Future, Biyani wilfully disobeyed the EA order and must face consequences. Del HC has directed for attachment of Biyani, Future Promoter Directors' assets. Del HC has asked Biyani, Future Promoter Directors to show cause why they should not be placed in civil jail for 3 months.

    Mar 22 – Del HC division bench stays the operation of the Single Judge Bench Order of Del HC. Division bench lifted stay on FRL deal, allowed for the deal to proceed. Division Single Judge bench had directed attachment of assets of Biyani, Future Promoter Directors.

    April 7 – Amazon moved SC, challenging lifting of the stay on FRL-RIL deal, by Del HC.

  • AND in STOCK MARKETS | All Future group stocks fall sharply as Supreme Court rules in favor of Amazon in Future-Amazon case

    The Supreme Court judgement puts in question - Reliance - Future deal.

    Reliance Industries shares at day’s low

    Also, what about the banks? asks CNBC-TV18's Mangalam Maloo

    Future group debt > Rs 12,000 crore PSU banks decline.

    Track more with our Stock Markets LIVE BLOG

  • BACKGROUND | This verdict comes nearly a year after Reliance Retail announced that it will be buying Future Group's retail, wholesale and the logistics and warehousing business by way of a slump sale for Rs 24,713 crore in August 2020. 

  • BIG BREAKING | Huge win for Amazon, Supreme Court holds that EA order is enforceable.

  • Alert - Supreme Court bench assembles to pronounce the verdict in the Amazon-Future dispute.

    SC will decide if Emergency Arbitrator Order is enforceable.

  • CNBC-TV18's Ashmit Kumar a 360 degrees round-up of the Amazon-Future Retail tussle ahead of the verdict.

    Click to watch more on this

  • Meanwhile, you can follow live updates from the RBI MPC decision today with our live blog and stock markets as well.

  • Explained: Myths and facts on the Future-Amazon legal dispute

    In this explainer, Santosh Nair dispels some of commonly-held myths around the Future-Amazon legal dispute.
    Supreme Court HIGHLIGHTS: Bench holds Singapore's EA award in favour of Amazon against Future Retail-Reliance Retail deal enforceable
  • Here's a complete timeline in the Amazon-Future case

    August 2019: Amazon enters into an agreement with Future Coupons, a Future Group promoter entity to but  49% stake for Rs 1,500cr. Future Retail and holds 7.3% stake in Future Coupons. Amazon indirectly got a 3.6% in Future Retail

    December 2019: Future Coupons receives Rs 1,500cr from Amazon

    2020

    August 29: Future Retail board approves Reliance Retail deal. Reliance Retail to buy Future Group's retail, wholesale & logistics business by way of slump sale for Ra 24,713cr

    October 9: Amazon approaches Singapore International Arbitration Centre objecting to Future-Reliance Retail deal

    October 25: Singapore Emergency Arbitrator bars Future Retail-Reliance Group deal in an interim award

    November 7: Future Retail moves Delhi HC against Amazon alleging interference

    November 20: Deal gets CCI nod

    December 21: Single-judge bench of Delhi HC refuses to stay deal, upholds FRL Aug 29 board resolution, but allows Amazon to write to regulators. Also upholds Future Retail's claim of torturous interference by Amazon

    Jan 2021: SIAC constitutes 3-member panel to pass final verdict, will take 6-9 months

    January 13: Delhi High Court's division bench issues notice to Future Retail on Amazon's plea against Dec 21 order which allowed regulators to decide

    January 20: SEBI gives nod to Future Retail-Reliance Group deal

    February 2: Single-judge bench of Delhi High Court orders status quo on Future Retail-Reliance Group deal

    February 3: Future Retail contests status quo order before 2-judge bench in Delhi HC

    February 8: Two-judge bench lifts Single bench's status quo order on FRL-Reliance retail deal

    Feb 11: Amazon moves SC challenging lifting of "status quo" orders by division bench of Delhi High Court

    February 12: NCLT hears & reserves order on Future Group plea on calling for shareholder meeting to approve deal with Reliance

    February 22: SC Allows Future Retail to proceed with plea for nod before NCLT, but restrains NCLT from finalizing orders sanctioning Future Retail Scheme. Issues notice to FRL on Amazon plea seeking status quo

    March 18: Delhi HC restrains FRL- Reliance Retail deal. Says FRL, Biyani deliberately and wilfully disobeyed the order, liable to face action under code of civil procedure. Directs assets of Kishore Biyani, Future Promoter Directors to be attached. Asks FRL, FCPL to approach all regulators to recall grant of deal approval

    March 18: SC says it will hear Amazon plea in last week of April

    March 20: Future Group challenges order directing stay on deal, attachment of assets of Kishore Biyani, Future Promoter Directors.

    March 22: Delhi HC stays Single Judge Bench order granting Status Quo, stays order that directed attachment of Biyani assets

    April 17: Future Retail board approves resolution plan to restructure secured financial debt under RBI's August 6, 2020 circular

    May 19: Reliance Retail Ventures moves NCLT, seeks nod to call for shareholder meeting

    July 12-17: SIAC final hearing on Amazon plea against the deal. Judgment expected after a month

    June 22: NCLT reserves order on Reliance Retail plea to call shareholder meeting

    July 20: SC resumes hearing of Amazon plea seeking a stay on FRL-Rel retail deal

    July 29: SC reserves judgment in the Amazon plea seeking to stay the sale of Future Retail.

  • Good morning readers! Welcome to CNBC-TV18.com's live coverage of the Supreme Court's verdict in the Amazon versus Future Retail tussle at 10:30 am today. Our team of journalists will keep you posted on the latest updates from the SC hearing today.

Supreme Court HIGHLIGHTS:
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.
Disclosure: Network18, the parent company of CNBCTV18.com, is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.