Future v. Amazon: Delhi High Court Refuses To Stay Singapore Based Tribunal's Order Halting Reliance Deal

The Delhi High Court on Friday rejected the plea filed by Future Group seeking an ad interim stay on the order passed by a Singapore based Arbitration Tribunal, refusing to interfere with the Emergency Award restraining it to continue with the Reliance deal.The Singapore International Arbitration Centre last week had rejected Future Group's plea to vacate the interim stay on the company's deal with Reliance passed in October last yearJustice Suresh Kumar Kait also sought response of global e-commerce giant Amazon in the plea, while posting the matter for further consideration on January 4.Senior Advocate Harish Salve appearing for FRL urged the Court to pass an interim order to clarify the Supreme Court's order, which had stayed the proceedings instituted by Amazon for enforcement of the Emergency Award passed in its favour, would remain in force despite the order passed by the arbitration tribunal.The Court however was of the view that due to the pendency of various appeals before the Apex Court, a clearance would be needed to proceed in the matter. On September 9, the Supreme Court had stayed the proceedings instituted by Amazon for the enforcement of the Emergency Award passed in its favour by a Singapore-based arbitrator halting the merger deal between Future Retail Limited and Reliance group.The Court also asked all authorities including the NCLAT, CCI and the SEBI to not pass final orders for four weeks in relation to the Future-Reliance deal.The Top Court passed the order in the special leave petitions filed by Future Coupons Private Ltd and Future Retail Ltd against the the single bench order of the Delhi High Court that directed the attachment of assets of Future group companies and its promoters Kishore Biyani and others for breach of the Emergency Award. The single bench had also issued a show-cause notice for civil arrest of Biyani and other directors of Future Group.Earlier, the Supreme Court had held that Emergency Award passed by Singapore arbitrator stalling FRL-Reliance deal was enforceable in Indian law and had also held that single judge's order was not appealable to the division bench of the High Court under Section 37(2) of the Arbitration Act.This had resulted in reinstating the order of the single bench of the Delhi High Court which had ruled in favour of the enforcement of the Emergency Award and had ordered the attachment of Future Coupons, Future Retail and Future group CEO Kishore Biyan's assets.What was the Delhi High Court single bench order?A single judge bench of Justice JR Midha on March 18, 2021 had directed for attachment of property of Future group companies and their promoters including Kishore Biyani and had also directed them to file additional affidavits indicating the details of their assets and property for violation of the emergency award. Also, the Single Bench had rimposed a cost of Rs. 20 lakhs on FRL and its promoters for raising an untenable plea of nullity against the award and the cost was directed to be deposited in PM fund of Covid 19 to be used in vaccination of senior citizens belonging to the below poverty line group. The Court ordered the same to be deposited within 2 weeks and the same shall be put on record within 1 week thereafter.The Court had held that the Emergency Arbitrator had rightly invoked the 'Group of Company' doctrine in relation to the Future Group companies and in view of this, the Court had also issued show-cause notice to as to why they shouldn't be detained in civil prison for violation of the order dated 25th October 2020.After the retirement of Justice JR Midha in June this year, the matter was assigned to a bench of Justice Suresh Kumar Kait.

Future v. Amazon: Delhi High Court Refuses To Stay Singapore Based Tribunal's Order Halting Reliance Deal

Nupur Thapliyal

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