In a big win for the US-based ecommerce giant Amazon, the Delhi High Court, recently upheld the emergency award passed by the Singapore International Arbitration Centre in October last year against the deal for the sale of Future Retail to Reliance Retail. The court, while rejecting Future Group’s argument that SIAC’s decision was legally invalid, imposed a fine of Rs 20 lakh on Future, to be deposited with the Prime Minister’s Relief Fund.
While pronouncing its verdict, the court observed that Future Retail, Future Coupons and Kishore Biyani had violated the emergency award, and issued a show-cause notice to Future Group founder Biyani and the company’s other promoters, also asking why they should not be detained in civil prison.
Later, Amazon objected to the deal and served Future a legal notice. It argued that by agreeing to the sale of its business to Reliance, Future was violating the non-compete clause in its contract with Amazon.