[Amazon v Future] No one is winning this battle: Harish Salve as Supreme Court calls for "gentleman's understanding"

Senior Advocate Harish Salve told the Supreme Court on Thursday that no one was winning the legal battle between Amazon and the Future Group companies..Appearing for Future Coupons Limited (FRL), Salve told the Bench of Chief Justice of India NV Ramana and Justices AS Bopanna and Hima Kohli,"What stops Amazon to call Mr Kishore Biyani and discuss? Let me assure you, no one is winning in this battle. Amazon God has to come to the ground and speak to lesser mortals like us...".The Court was hearing Amazon's challenge to the Delhi High Court order staying proceedings before a Singapore International Arbitration Centre (SIAC) tribunal in relation to the e-commerce giant's 2019 deal with Future Coupons.On the last date of hearing, the apex court had directed the parties to request the National Company Law Appellate Tribunal (NCLAT) to expeditiously dispose of Amazon's appeal against the Competition Commission of India's order suspending its 2019 deal with the Future Group..When the matter was taken up today, CJI Ramana asked how much time the NCLAT would take to decide the appeal. However, Senior Advocate Gopal Subramanium, appearing for Amazon, insisted that the arbitration has to survive."Amazon is a foreign investor; even if Reliance India Limited (RIL) or Adani gets FDI, all of us will be in same position...can a person who sets in motion arbitral remedy complain against statutory authority?" Subramanium submitted. At this point, CJI Ramana replied,"If you take this stand, then the matter cannot be decided.""We cannot let the spinner's wheel to continue. At least have a conversation," Subramanium urged..Salve then said,"No one is winning. FRL, Reliance and Amazon all have issues. I don't know why we need a court order for a dialogue."CJI Ramana agreed that it would be in the interest of both parties to resolve the issue through mutual discussion."As far as talk is concerned, there are three large business houses. They won't need a mediator. I can assure you if Mr Subramaniam gets in touch with Mr Naik, I will arrange a meeting," Salve told the Court.He suggested that the matter be adjourned for three weeks while the solicitors have a conversation on how to resolve the matter.The Court then said that it could direct the Delhi High Court not to pass orders in the matter. The proceedings before the NCLAT could continue, CJI Ramana said..At this stage, Senior Advocate Mukul Rohatgi pointed out,"We are facing injunction in terms of our scheme. We have a debt of ₹27,000 crore. One company wants to take it up. Now there is a proposal of talks, but what about the injunction?"CJI Ramana ultimately said,"We will simply adjourn the matter for 10 days and we don't say anything on record. Meanwhile, work out by gentleman's understanding. It will be better in interest of business. If you can find out some solution, tell us, or we will hear and pass orders."In the meantime, the Delhi High Court and the NCLAT will not pass orders, the Bench said while adjourning the matter to March 15..As the hearing drew to a close, Salve said,"We hear Amazon is starting criminal proceedings and we hope the 10-day period is not used to start a criminal case against us."Subramanium assured the Court that no such action would be taken..On January 5 this year, a Division Bench of the Delhi High Court had stayed the arbitration proceedings between Amazon and Future. It had also stayed the order of the single-judge which had refused to intervene in the matter and dismissed the pleas filed by the two subsidiaries of the Future Group.An arbitration tribunal in Singapore had been hearing Amazon's case against Future Group related to the 2019 deal between the two companies. While hearing this case, the tribunal had passed an interim order stalling the sale of Future Retail's assets to Reliance Industries.Future Retail had petitioned the tribunal, arguing that continuing proceedings there would be illegal in view of the CCI ruling against Amazon.The CCI had suspended the clearance for the deal, stating that Amazon had failed to notify it about certain crucial details of its acquisition of a 49 per cent stake in Future, as required under Section 6(2) of the Competition Act, 2002 (Act). It had, therefore, also imposed of a penalty of ₹202 crore on Amazon. This order is under challenge before the NCLAT.After the tribunal refused to consider the request before starting a final hearing, the Future Group moved the Delhi High Court. This led to the single-judge order that was eventually stayed by the Division Bench. Amazon subsequently moved the Supreme Court in appeal against this order..[Read a live account of the hearing]

[Amazon v Future] No one is winning this battle: Harish Salve as Supreme Court calls for "gentleman's understanding"

Debayan Roy

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