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.
