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IN THE HIGH COURT OF DELHI
Amit Bansal, J.
Future Retail Ltd. - Appellant
Versus
Amazon.com NV Investment Holdings LLC - Respondent
CM(M) 2 of 2022 & CM No. 176 of 2022 (for interim relief) and CM(M) 3 of 2022 & CM No. 179 of 2022 (for stay)
Decided On : 04-01-2022




The court affirmed that procedural decisions made by the Arbitral Tribunal are within its discretion and are not subject to interference under Article 227 unless fundamental flaws are demonstrated.

Headnote:(A) Arbitration and Conciliation Act, 1996 - Sections 5 and 32(2)(c) - Judicial intervention in arbitration proceedings - The High Court found no grounds for intervention in procedural orders of the Arbitral Tribunal regarding case management and hearing schedules, emphasizing Arbitral Tribunal's discretion in conducting proceedings. (Paras 22-32)

(B) Rights of petitioners - The right to challenge procedural orders under Article 227 does not extend to interfering with an Arbitral Tribunal's discretion, and adjournments in international arbitration proceedings are not routinely granted. (Paras 18, 30)

(C) Judicial examination - The Court underscored the need for respect for the autonomy of the Arbitral Tribunal in managing its procedures effectively. (Paras 20, 26)

Facts of the case:
The judgment arose from petitions challenging the procedural orders of the Arbitral Tribunal during ongoing arbitration between three corporate parties related to competition law and contractual disputes. The petitioners sought relief to prioritize termination applications ahead of expert witness hearings.

Findings of Court:
The Court dismissed the petitions, confirming the Arbitral Tribunal's decisions on scheduling hearings and affirming its discretion in case management.

Issues: The main issues concerned the timing of termination applications and the procedural authority of the Arbitral Tribunal.

Ratio Decidendi: The court ruled that procedural orders of the Arbitral Tribunal are not subject to interference unless there are pervasive flaws, recognizing the Tribunal's authority to manage its proceedings effectively.

Result: Petitions dismissed.

Table of Content
1. outline of arbitration proceedings and petitions. (Para 1 , 2)
2. procedural orders and tribunal's reasoning. (Para 3 , 4 , 5)
3. arguments of fcpl and frl on termination applications. (Para 6 , 7 , 8 , 9)
4. court's consideration of grievances and procedural fairness. (Para 10 , 11 , 12)
5. court's analysis of scheduling and procedural discretion. (Para 13 , 14 , 15 , 16)
6. covid-19 considerations in scheduling hearings. (Para 19 , 20 , 21)
7. judicial intervention under article 227. (Para 23 , 24 , 25 , 26)
8. court’s stance on procedural orders and rights to challenge. (Para 30 , 31)
9. final decision to dismiss petitions. (Para 32)

JUDGMENT

Amit Bansal, J. Both the present petitions filed under Article 227 of the Constitution of India arise out of the same arbitration proceedings tilted as Amazon.com NV Investment Holdings LLC v. Future Coupons Private Limited, being SIAC Arbitration No.960 of 2020, involving, inter alia, (i) Amazon.com NV Investment Holdings LLC [hereinafter Amazon'], (ii) Future Coupons Private Limited [hereinafter `FCPL']; and, (iii) Future Retail Limited [hereinafter `FRL'].

2. The challenge in CM(M) 3/2022 is to the impugned orders dated 29th December, 2021, 30th December, 2021 and 31st December, 2021 passed by the Arbitral Tribunal, whereas in CM(M) 2/2022, the orders dated 29th December, 2021 and 30th December, 2021 passed by the Arbitral Tribunal have been impugned. In both the petitions, further relief is sought to declare the continuation of the arbitration proceedings as contrary to law and to direct the Arbitral Tribunal to decide the termination applications filed by the petitioners on 23rd December, 2021 before continuing with the arbitration proceedings.

3. The impugned order dated 29th December, 2021 is in relation to the Procedural Order No.6 issued by the Arbitral Tribunal, whereby the Arbitral Tribunal has stated/observed that:

    (i) In view of the extensive preparations made for the hearing of the expert witnesses from 05th January to 08th January, 2022, the Arbitral Tribunal does not consider it correct to abandon the said hearing for hearing the termination applications filed on behalf of the petitioners.

    (ii) It is not clear whether or not the order dated 17th December, 2021 of the Competition Commission of India (CCI) is appealable and hence, cannot form the basis for termination of the arbitration proceedings.

    (iii) In view of the strength of the legal team of the parties and the fact that the aforesaid dates in January, 2022 were fixed long time back, there is no reason to adjourn the said hearings.

    (iv) The issue as to when to hear the termination applications is an issue of case management and therefore, the Arbitral Tribunal has the full discretion to decide when to hear the said applications.

4. The second impugned order dated 30th December, 2021 is also stated to be in reference to Procedural Order No.6, whereby the Arbitral Tribunal has stated/observed that:

    (i) The Arbitral Tribunal has not taken any decision with regard to implications of the CCI order on the continuation of the said arbitration. What was expressed in the impugned order dated 29th December, 2021 was only the preliminary view of the Arbitral Tribunal so that the parties can address submissions accordingly.

    (ii) It was noted that the Arbitral Tribunal will give reasonable opportunity to all the parties to present their submissions on the matter of implication of the CCI order on the arbitration proceedings.

    (iii) In view of the parties being asked to file their written submissions in support of their respective contentions in respect of the termination applications, one day for hearing would be sufficient for the oral submission of the parties.

    (iv) Dates for hearing of the expert witnesses in January, 2022 were agreed by the parties until just before Christmas i.e., 25th December, 2021.

    (v) No prejudice would be caused to the petitioners if the hearing on the termination applications

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