Amazon moves NCLAT after CCI cancels futures deal

The move follows a Delhi High Court order on January 5, which suspended Amazon’s arbitration proceedings in Singapore against Future Group for breach of contract. According to the 57-page order of the CCI, the approval of the deal between Amazon and Future Group will be stayed.

Anti-trust watchdog fines Amazon 202 crore for allegedly misrepresenting and concealing information while seeking regulatory approval in 2019 to buy stake in Future Coupons.

A favorable ruling for Amazon would probably help the firm to resume arbitration proceedings and fight for its contractual rights.

However, if the NCLAT finds merit in the CCI order, the US firm will have to move the Supreme Court. If the apex court also upholds the CCI’s decision, Amazon will have no jurisdiction for arbitration proceedings against Future Group.

It is natural for Amazon to oppose the CCI’s order to suspend its 2019 deal with Future Coupons and impose a Nikhil Verma, Managing Partner, Miglani Verma & Co, said the fine of 202 crores, the highest ever imposed by CCI, advocates, advocates and consultants.

According to Verma, there is every possibility that Amazon will be put on hold on the CCI order, but will be asked to deposit a part of the fine amount in advance.

“The NCLAT’s decision in this case is set to be significant, as it will determine the CCI’s power to suspend its approval under the merger control regime introduced in 2011. A favorable ruling would mean that Amazon has There is no hefty fine to pay. Overall, the appeal will not hurt Amazon, as the transaction has already been concluded,” Verma said.

The NCLAT order may have a significant bearing on the asset sale deal of Future Group with Reliance Industries Ltd signed in 2020.

Verma said a favorable ruling for Amazon would strengthen its claim against the Future Group-RIL deal before the Singapore International Arbitration Court (SIAC). “However, an adverse ruling would allow RIL to acquire Future’s retail assets as it may terminate the investment made by Amazon in Future Coupons and its rights under the Shareholders’ Agreements and Share Subscription Agreement,” he said.

Last week, Future Group moved the Delhi High Court to quash proceedings initiated by Amazon before the Singapore Arbitration Centre.

The group had earlier filed a termination application at the Singapore Tribunal to stay the proceedings. The tribunal, however, had turned down the retailer’s request as it was set to hear the Amazon-Future dispute on January 5-7.

The SIAC has stayed the arbitration proceedings following the order of the Division Bench of the Delhi High Court.