“Having considered the jurisdictional objection, the parties’ submissions on the same and the circumstances of the case, the court of SIAC has decided...that the arbitration shall proceed,” said the tribunal in its ruling. “Accordingly, SIAC shall now proceed with the constitution of the tribunal in this matter.”
Under Rule 28.1 of the proposed arbitration, if any party objects to the existence or validity of the arbitration agreement, or competence of the SIAC to administer the arbitration before the constitution of the tribunal, the registrar determines if such an objection needs to be settled by a court. Subsequently, the court decides if the arbitration can proceed.
Amazon Indirectly Owns 5% in FRL
Amazon indirectly owns a 5% stake in Future Retail, which runs all the grocery stores of the group --Big Bazaar, HyperCity, Easyday and Nilgiri's. Amazon’s stake is held through a 49% ownership, bought last year for ₹1,500 crore, in Future Coupons.
However, in August, Reliance Retail Ventures, a unit of Reliance Industries, agreed to buy the retail assets of the Future Group on a slump sale basis for about ₹25,000 crore.
The US ecommerce major claimed that Future Group breached a contract under which Amazon had acquired an indirect stake in its retail business.
SIAC, a non-profit body, provides an alternative method of dispute resolution in cross-border transactions involving foreign companies, settling cases privately and confidentially outside the public court system.
How the battle between Amazon and Reliance is turning into a foreign vs local debate
According to a report by Bloomberg, a battle between Amazon.com Inc. and Reliance Industries Ltd. to dominate India’s $1 trillion consumer market is stoking nationalist rhetoric in a courtroom and outside, as the two companies tussle over the future of a distressed local retailer. At the center of the case is Amazon’s efforts to block Reliance’s planned purchase of Future Group’s assets, saying the Indian retailer violated a contract by agreeing to a sale to a rival controlled by billionaire Mukesh Ambani.
Read More News on
Download The Economic Times News App to get Daily Market Updates & Live Business News.
19 Comments on this Story
Shri 60 days ago
if Singapore laws in India, then India laws in Singapore. we can send ten million desis there to help economy
Shri 60 days ago
nonsense. no foreign laws in India. f off
Anurodh Dayal60 days ago
Amazon purposely avoiding the made in china goods in their description. In my recent purchase for air purifier I ordered Phillips make but the country of origin was missing. When I received the material I find made in china. I avoid china make the product but now Amazon refuse to take a return.