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A Supreme Court bench consisting of the Chief Justice of India Ramana, Justices Bopanna and Hima Kohli today suggested that Amazon Inc, the Future Group and Reliance Retail may resolve their issues over the Rs. 24,000 cr stake sale deal between Future and Reliance, through discussion.

The Court was hearing a plea by Amazon challenging the order of Delhi High Court staying arbitration proceedings before Singapore International Arbitration Centre (SIAC) arising out of Amazon’s 2019 deal with Future Coupons Pvt Ltd. 

The Court initially enquired about the status of proceedings before the National Company Law Appellate Tribunal (NCLAT), which were earlier directed to be heard expeditiously.

At the outset Sr. Adv. Gopal Subramanian, appearing on behalf of Amazon, pointed out that just like Amazon is facing issues in its deal with Future Coupons for being a foreign investor, tomorrow even if Reliance Industries Limited or Adani obtain Foreign Direct Investment, their deals will be in the same position.

Upon the CJI's remark that the matter will not end, Subramanian urged the Court that a mediation may be suggested.

However, Sr. Adv. Harish Salve appearing for Future Retail Ltd (FRL) responded saying that there was in fact no need for a Court order for a dialogue as the same could be arranged anyhow between the 3 business houses. 

He further added, "The Amazon Gods will have to descend to talk to mortals like us," and pointed out that in the current scenario, “No one is winning" as "FRL, Reliance and Amazon all have issues."

The Court agreed that it would be in the interest of the parties to resolve the issues through discussion.

Salve said, “As far as talk is concerned, there are three large business houses. They won't need a mediator. I will arrange a meeting.”

The CJI remarked that the Court will pass an order directing the Delhi High Court and NCLAT not to pass any orders in ongoing related matters.

Sr. Adv. Mukul Rohatgi appearing for Future Coupons informed Court that they are "facing an injunction in terms of our scheme" and "have a debt of ₹27,000 crores."

Expressing his disapproval he said, that while one company wanted "to take it up", "now there is a proposal of talks.”

However, the Court proceeded to pass an order stating that it has heard the counsels at length and has taken into consideration that there are ongoing proceedings in Delhi High Court and NCLT, NCLAT.

It recorded Subramanian’s request for withholding of pronouncement of orders in proceedings between these parties and further recorded Salve’s submission that there is no need to pass any withholding order as the matters will not conclude in the next 10 days.

The matter has now been adjourned to March 15 for further consideration.

It is to be noted that the Court had mooted for an intra party settlement when Future Group approached the Supreme Court seeking an injunction against a consortium of banks from declaring its loans as Non-Performing Asset.

Cause Title: Amazon Ltd vs Future Coupons