In a setback for the Future Group, the Singapore Arbitral Tribunal has rejected its plea to scrap arbitration proceedings against Amazon. The tribunal has allowed the arbitration to continue and will hear Amazon's plea against Future Group where the former is likely to press for damages.

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The Future Group had sought termination of the arbitration proceedings by citing the Competition Commission of India (CCI) order that suspended approval for Amazon's investment.

Also Read | Amazon vs Future Retail: A timeline of how events unfolded

In December 2021, the CCI had suspended approval for Amazon's investment in Future citing a lack of full disclosure. The National Company Law Appellate Tribunal (NCLAT) on Monday upheld the December CCI order suspending Amazon's 49 percent stake in Future Coupons Pvt Ltd (FCPL), the promoter of the Future Group.

Amazon had argued that Future Retail Limited (FRL) did not honour the Singapore Emergency Arbitrator's award of October 2020 and that the lenders could not have entered into a framework agreement with FRL in breach of the award. The e-retailer had moved the Emergency Arbitrator in Singapore for alleged breach of contract by FRL.

People in the know have told CNBC-TV18 that the Future Group is likely to challenge this order by the Singapore tribunal and may move to the Delhi High Court in this regard.

FRL has defaulted on a payment of Rs 5,322.32 crore to its lenders amid the ongoing litigations with Amazon and other related issues. Future Group's proposed deal with Reliance, which was opposed by Amazon, also fell through. In March, the Bank of India through a public notice claimed its charge over the assets of FRL and warned the public against dealing with assets of the Kishore Biyani-led Future Group firm.

The secured lenders of Future Retail voted nearly 70:30 against Future Group's Rs 24,713 crore deal to transfer its retail, wholesale, logistics and warehouse assets to Reliance Retail Ventures Limited (RRVL).

(Edited by : Abhishek Jha)