SIAC rejects Future Group's plea to dismiss arbitration Proceedings
SIAC rejects Future Group's plea to dismiss arbitration Proceedings
The tribunal observed that the application had not rendered the continuation of the proceedings impossible or unnecessary
The Singapore International Arbitration Centre (SIAC) has dismissed the plea of the Future Group to terminate the arbitration proceedings between the Kishore Biyani-led firm and Amazon.
The SIAC order said there was no ground for the termination of the proceedings under Section 32 of the Arbitration Act. The order comes after Future Retail filed a petition in SIAC asking for the termination of the proceedings on the basis of the Competition Commission of India's (CCI) order that suspended the deal between Amazon and Future Coupons.
The order of the presiding arbitrator Michael Hwang said, "It is unnecessary for the tribunal to make any findings with respect to Amazon's contention that the termination applications ought to be rejected on account of the respondent's contumacious conduct."
As part of the deal, in 2020, Future Group had announced selling 19 companies operating in the retail, wholesale, logistics and warehousing segments to Reliance Retail Ventures.
Post the deal, Amazon approached SIAC on the back of its 2019 deal with Future Coupons to oppose Future Group's deal with Reliance Retail.
But recently, Reliance Retail said that it would not move on its plan to buy Future Group's businesses after secured lenders to the company voted against the deal.
A majority of secured creditors had voted against the resolution needed to approve Future Group's Rs.24,713 crores scheme to sell most of its retail and logistical businesses to Reliance Retail.
