Current Affairs
Daily Bits

SIAC rules in Amazon’s favour, puts Future-Reliance deal on hold.

  • Posted By
    10Pointer
  • Categories
    International Organisation
  • Published
    29th Oct, 2020

  • Singapore International Arbitration Centre (SIAC): passed the order on a plea from global e-commerce giant Amazon.
  • This order now restraints Future Group and Reliance Industries Limited from proceeding with a Rs 24,713-crore deal signed in August for Future Retail to sell its retail, wholesale, logistics and warehousing units to Reliance Retail and Fashion style.
  • Singapore International Arbitration Centre (SIAC) is a not-for-profit international arbitration organizationbased in Singapore, which administers arbitrations under its own rules of arbitration and the United Nations Commission on International Trade Law (UNCITRAL) Arbitration Rules.
  • The parties in a deal usually sign a contractual agreementwhich specifies about the arbitral institution administering the arbitration, the applicable rules and the seat of arbitration.
  • In this case Amazon and Future Group have under their agreement agreed to refer their disputes to SIAC, with Singapore presumably being the contractual choice for the seat/place of arbitration.
  • What happens when the parties don’t comply with the order voluntarily?
  • Currently under Indian law, there is no express mechanism for enforcement of the orders of the Emergency Arbitrator.
  • if the parties don’t comply with the order voluntarily,then the party which has won the emergency award, in this case Amazon, can move the High Court in India.

Verifying, please be patient.