Amazon.Com NV Investment Holdings LLC V. Future Coupons (P) Ltd., 2021 SCC Online Del 1279 - Synopsis
Team SoOLEGAL 9 Aug 2021

In this case the Delhi High Court considered three critical questions-

1. What is an Emergency Arbitrator's legal status?

2. Is it possible that the Emergency Arbitrator misapplied the Group of Companies doctrine, which only applies to proceedings under Section 8 of the Arbitration and Conciliation Act?

3. Is the Emergency Arbitrator's interim order null and void? invested Rs 1431 crore in Future Coupons Private Limited (FCPL) on the basis of certain special, material protective/negative rights available to FCPL in Future Retail Limited (FRL), namely, that the Retail Assets of FRL would not be alienated without's (Petitioner) prior written consent, and never to a Restricted Person. Furthermore, an agreement was reached in which it was claimed that FRL would be the sole vehicle for the conduct of FCPL and FRL's operations, resulting in FRL receiving the entirety of the investment.

Within months of the investment, it was found that the Biyanis, who control FRL, had violated the agreements by failing to fulfil contractual obligations, and had authorised a transaction involving the transfer of its retail assets to a Restricted Person under the petitioner-respondent Shareholders' Agreement (FCPL-SHA).

Also, the petitioner established a strong prima facie case that the respondents were in breach of their contractual responsibilities, according to the arbitrator. The arbitrator further stated that if the interim injunction was not granted, the petitioner would suffer irreparable harm. And the petitioner's rights under the FCPL-SHA, the SSA, and the FRL-SHA have apparently been compromised by the Respondents, and the Respondents have provided no good legal reasons for selling FRL's Retail Assets to the Restricted Person behind the petitioner's back.

Thus, the court ruled that the respondents are accountable for the consequences stated in Order XXXIX Rule 2A of the Code of Civil Procedure since they consciously and willfully violated the interim order.


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