The Competition Commission of India (CCI) order assessing a forfeiture of Rs 202 crore on Amazon on December 17 added another twist to the Amazon-Future saga that has been going on before colorful courts since October 2020. Indeed after further than a time since the disagreement began, the commercial-legal saga remains on the pustule.
The sophisticated hassle between the US- grounded Amazon and Kishore Biyani- led Unborn group saw numerous rounds of courtroom battles and has affected several other parties, including an Indian confederation of merchandisers, a lender, and also another retail mammoth of India.
The CCI’s order now has kept its blessing for the 2019 investment deal between the two companies in latency noting that the commission may need to take a fresh look at the arrangement between the parties for blessing.
The CCI also said that Amazon made “ false and incorrect statements” while seeking the body’s blessing for its investment deal with Unborn group establishment Future Tickets Pvt Ltd. The American retailer also “ suppressed factual compass” of the arrangement, the antitrust watchdog said, pertaining to Amazon’s strategic interest in Unborn group’s listed company Unborn Retail Ltd.
Through this investment, Amazon acquired not only a 49 stake in Unborn Tickets but also certain benefits in terms of right of first turndown, among other effects. The clauses in the agreement have also placed a ban on the Unborn group from entering into any deal with a list of realities which included Reliance Diligence. It was this clause that Amazon cited while seeking to block the asset trade agreement between India’s top two retailers, Reliance Retail and Future Retail.
Interestingly, while the CCI’s move to keep its former blessing in latency is by and large unknown, it’s material to note that the blessing has not been quashed.
The proceedings before CCI took place after Unborn Tickets Pvt Ltd filed a complaint of wrongdoing against Amazon. This plea prompting the CCI to review its blessing also plant support from the Confederation All India Dealers as well as some independent directors of Unborn Retail. The result of a fresh retrospection of the 2019 deal may go either way and chances of Amazon securing the blessing indeed after this original jolt remain 50-50.
In the meantime, still, an appeal may be anticipated to be filed by Amazon before the National Company Law Appellate Tribunal against the CCI’s December 17 ruling as the natural coming step. The possibility of Amazon approaching either the Delhi High Court or the Supreme Court directly is slim but can not be ruled out.
The CCI order won’t have a direct impact on the transnational arbitration proceedings pending before the Singapore International Arbitration Centre between Amazon and Future group. The bench, which is listed to meet in January, has full discretion to do with or break the proceedings after the development of December 17 is made given to it.
The bench is assigned with deciding the disagreement concerning the impending Future-Reliance junction in the light of the Amazon-Future deal of 2019 and the specific clause barring Future from dealing with Reliance Diligence. A suspense of blessing by one Indian controller may not avert the bench from deciding the disagreement before it in agreement with the arbitration laws and the arbitration agreement that both Amazon and Future group acceded to back in 2019.
It has been seen in the history in the same case that the compliances and findings of an Indian court have little bearing on proceedings before the bench. Despite the findings of a single- judge bench of the Delhi High Court noting, in December 2020, that the agreement between Amazon and Future Tickets can not be conflated with the agreement Unborn Tickets has with Unborn Retail in the capacity of its protagonist, the SIAC bench ruled to hold Unborn Retail a valid party to the agreement with Amazon.
No Comments Yet