AMAZON.COM NV INVESTMENT HOLDINGS LLC versus FUTURE RETAIL LIMITED & ORS.

Citation: [2021] 4 S.C.R. 771 · Decided: 06-08-2021 · Supreme Court of India · Bench: R.F. NARIMAN · Disposal: Disposed off

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Judgment (excerpt)

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   [2021] 4 S.C.R. 771
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AMAZON.COM NV INVESTMENT HOLDINGS LLC
v.
FUTURE RETAIL LIMITED & ORS.
(Civil Appeal Nos. 4492-4493 of 2021)
AUGUST 06, 2021
[R. F. NARIMAN AND B. R. GAVAI, JJ.]
Arbitration and Conciliation Act, 1996:
ss. 17(1) and (2) – Interim measures ordered by arbitral
tribunal – “Award” by Emergency Arbitrator under the Arbitration
Rules of the Singapore International Arbitration Centre – Seat of
arbitral proceedings in India and governed by SIAC Rules – Said
award, if an order u/s. 17(1) – Held: Award by Emergency Arbitrator
under SIAC Rules can be said to be an order u/s. 17(1) – Full party
autonomy is given by the Arbitration Act to have a dispute decided
in accordance with institutional rules which can include Emergency
Arbitrators delivering interim orders, described as “awards” – Such
orders aid of decongesting the civil courts and affording expeditious
interim relief to the parties – Such orders are referable to and are
made u/s. 17(1) –Arbitration Rules of the Singapore International
Arbitration Centre.
s. 37 – Appealable orders – Order passed u/s. 17(2) in
enforcement of the award of an Emergency Arbitrator by Single
Judge of the High Court – Appeal thereagainst u/s. 37 – Held: No
appeal lies u/s. 37 against an order of enforcement of an Emergency
Arbitrator’s order made u/s. 17(2) of the Act.
Arbitration Rules of the Singapore International Arbitration
Centre: r. 1.3 – Term Emergency arbitration – Explanation of –
Held: Reading of the SIAC Rules indicates that even before an
arbitral tribunal is constituted under the Rules, urgent interim reliefs
can be granted by an “Emergency Arbitrator” –An Emergency
Arbitrator as defined by r. 1.3 means an arbitrator in accordance
with paragraph 3 of Schedule 1 – Emergency Arbitrator has all the
powers vested in the arbitral tribunal pursuant to SIAC Rules,
including the authority to rule on his own jurisdiction – Emergency
Arbitrator has the power to order such interim relief that he deems
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SUPREME COURT REPORTS
[2021] 4 S.C.R.
necessary, and is to give summary reasons for his decision in writing
– Once the arbitral tribunal is constituted under paragraph 10, the
tribunal may reconsider, modify, or vacate any such interim order –
Such interim order or award issued by the Emergency Arbitrator
would continue to bind the parties unless it is modified or vacated
by the arbitral tribunal, once it is constituted, until the tribunal
makes a final award or until the claim is withdrawn.
Code of Civil Procedure, 1908: Ord XLIII, r. 1(r) – Appeals
from orders – Maintainbility of appeal under Ord. XLIII, r. 1(r),
when enforcement order of the award of an Emergency Arbitrator
made under Arbitration Act – Explained.
Disposing of the appeals, the Court
HELD: 1.1 A reading of sections 2(6), 2(8), 19(2) and 21 of
the Arbitration and Conciliation Act, 1996 would show that an
arbitration proceeding can be administered by a permanent
arbitral institution. Importantly, Section 2(6) makes it clear that
parties are free to authorise any person including an institution
to determine issues that arise between the parties. Also, under
Section 2(8), party autonomy goes to the extent of an agreement
which includes being governed by arbitration rules referred to in
the aforesaid agreements. Likewise, under Section 19(2), parties
are free to agree on the procedure to be followed by an arbitral
tribunal in conducting its proceedings. Section 21 provides that
arbitral proceedings in respect of a particular dispute commence
on the date on which a request for that dispute to be referred to
arbitration is received by the respondent. This Section is
expressly subject to agreement by the parties. [Paras 11, 12]
[801-E-H]
1.2 By agreeing to the application of the Arbitration Rules
of the Singapore International Arbitration Centre (SIAC Rules),
the arbitral proceedings in the instant case can be said to have
commenced from the date of receipt of a complete notice of
arbitration by the Registrar of the SIAC, which would indicate
that arbitral proceedings under the SIAC Rules commence much
before the constitution of an arbitral tribunal under the said Rules.
This being the case, when Section 17(1) uses the expression
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“during the arbitral proceedings”, the said expression would be
elastic enough, when read with the provisions of Section 21 of
the Act, to include emergency arbitration proceedings, which only
commence after receipt of noti

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