'Request NCLAT To Decide Appeal Against CCI Order' : Supreme Court Tells Amazon, Future; Plea Against HC Stay On Singapore Arbitration Deferred To March 9

The Supreme Court on Friday adjourned to next week Amazon's challenge to Delhi High Court's stay on the Singapore arbitration proceedings against Future Group, to await the outcome of the appeal filed by Amazon in the National Company Law Tribunal against the Competition Commission of India revoking its sanction for the deal with Future Retail.The Court adjourned the hearing on being told that the NCLAT is hearing the appeal day after tomorrow and that the High Court's stay order was based on the CCI's action."The present SLP is in one way connected to the outcome of the order challenged before the NCLAT. We direct parties to request NCLAT to decide the case. List on March 9", the bench led by the Chief Justice of India said in the order.The bench comprising CJI NV Ramana, Justice AS Bopanna and Hima Kohli was hearing a special leave petition filed by Amazon against Delhi High Court's order staying further arbitration proceedings before the Singapore Tribunal against Future Group.The Bench had earlier issued notice to respondents Future Retail Ltd and Future Coupons Private Ltd. Arguments in court todaySenior Advocate Gopal Subramanium, appearing for Amazon, submitted that the High Court's order has been passed in a "non-maintainable appeal". He argued that the single bench's order was passed in exercise of Article 227 of the Constitution and hence an intra-court appeal before division bench was not maintainable. He pointed out that Future Retail Ltd had approached the High Court seeking a direction that the Singapore Tribunal must hear its plea to terminate the proceedings first before final hearing on merits. When the single bench refused relief, they approached the division bench. Subramanium argued that the appeal before the division bench was not maintainable.The senior counsel further emphasised that the settled principle is that the objections to the jurisdiction should be raised before the Tribunal, including the issues relating to invalidity of the agreement. He referred to Section 16 of the Arbitration and Conciliation Act, which gives Tribunal competence to rule on its jurisdiction. Reference was made to the Supreme Court judgment in Vidya Drolia case.The senior counsel pointed out that the division bench stayed the proceedings by saying that the Competition Commission of India has revoked approval for Amazon- Future deal. The appeal against the CCI order is pending before the National Company Law Appellate Tribunal.He urged that staying an international arbitration proceedings is extremely rare."It is after 29 years that an international arbitration proceedings have been suspended. My lord the Chief Justice has said on many occasions that best practices of arbitration internationally is embedded in Indian system. So to suspend this proceeding now will render a blow to this policy", he submitted.Senior Advocate Ranjit Kumar, supplementing Subramanium, submitted that having decided to approach the Tribunal with a termination application under Section 32(c) of the Arbitration Act, Future Group cannot take recourse to writ proceedings.The bench asked why can't this point be raised in the pending appeal before the division bench.Agreement unenforceable after revocation of CCI approval : FCPLSenior Advocate Mukul Rohatgi, appearing for Future Coupons Private Ltd, argued that after the CCI revoking the approval for the Amazon's deal on the grounds of future and misrepresentation, the agreement, which contains the arbitration clause, can't be enforced. Senior Advocate Harish Salve, appearing for Future Retail Ltd, supported the arguments of Rohatgi.On being informed that the appeal in the NCLAT is listed day after tomorrow, the bench suggested that it can keep the present SLP pending to await the outcome of the NCLAT proceedings.Background:The impunged order of the division bench also stayed the Single Judge order which had dismissed Future Group's plea challenging the two orders passed by the Singapore Arbitration Tribunal which deferred the hearing in Future's plea seeking termination of the arbitration proceedings instituted by Amazon.The High Court had also issued notice on the two appeals filed by Future Retail Ltd. and Future Coupons Pvt. Ltd. impugning the said Single Judge order and made it returnable on February 1, 2022.Before the High Court, Future Group in its plea had placed reliance on an order passed by the Competition Commission of India on December 17, 2021, which had kept the approval granted for Amazon's deal with Future Group in abeyance.Before the Supreme Court, Amazon has argued that the impugned interim order injuncting an ongoing international commercial arbitration seated in New Delhi under SIAC Rules presided over by a distinguished Arbitral Tribunal and involving parties and experts from across the world is strikingly contrary to the provisions, intent and purpose of the Arbitration and Conciliation Act which emphasises party autonomy and minimum judicial interference.Amazon...

'Request NCLAT To Decide Appeal Against CCI Order' : Supreme Court Tells Amazon, Future; Plea Against HC Stay On Singapore Arbitration Deferred To March 9

Srishti Ojha

Tags