Delhi HC Rejects Future's Plea To Declare Arbitration With Amazon Illegal
The Competition Commission of India (CCI) had earlier suspended a 2019 deal used by Amazon to assert rights over Future Retail
New Delhi: The ongoing tussle between Future Retail and Amazon.com doesn't seem to end. On Tuesday, Delhi High Court dismissed Future’s petition to declare arbitration proceedings with US e-commerce major as illegal, according to a report by Reuters.
The verdict came after Future Retail asked the high court that there was no legal basis for the arbitration to continue between the two sides, Future Retail and Amazon.com.
The Competition Commission of India (CCI), country’s antitrust agency, had earlier suspended a 2019 deal used by Amazon to assert rights over Future.
Justice Amit Bansal at the Delhi High Court said on Tuesday that the filings were dismissed, without giving any further details. A written order will be released later on Tuesday.
Amazon and Future have been locked in legal battles for several months.
According to the Reuters report, the US e-tailer has successfully used the terms of its $200 million investment in a Future unit in 2019 to block the Indian retailer’s attempt to sell retail assets to rival Reliance Industries, alleging breach of certain contracts. Future denies any wrongdoing.
Alleging breach of several contracts, Amazon successfully used the terms of its toehold $200-million investment in debt-laden Future to block the Indian retailer’s attempt to sell retail assets to a rival company.
The long-running conflict is being heard by a Singapore arbitration panel, but both sides have been fighting parallel cases in Indian courts to enforce or overrule certain decisions taken by the arbitrator.
Future Retail argued that since the 2019 deal no longer has antitrust approval, it has “no legal existence” in India, and Amazon can no longer assert any of its rights.
The “continuation of the entire arbitration proceedings is a perpetuation of illegality,” Future said in its filing dated December 31.
The filing also showed that Future’s appeal to the Delhi High Court comes after the Singapore arbitration panel did not agree to its immediate demands to terminate the proceedings, saying arguments would continue this month.
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