Amazon-FRL Dispute : Future Coupons Move Supreme Court Against Delhi HC Single Bench Order Attaching Assets

After a setback, Future Group firm Future Coupons Private Ltd moved the Supreme Court on August 12, seeking a stay against the order passed by the single bench of the Delhi High Court that directed attachment of assets of Future Coupons, Future Retail, Future Group Promote Kishore Biyani's assets and issued a show-cause notice for Civil Arrest of Biyani and other directors of Future Group. Notably, a bench headed by Justice RF Nariman of the Supreme Court had last week had ruled in favour of e-commerce giant Amazon in its dispute with Future Retail Limited(FRL) over the latter's merger deal with Reliance group. The Top court 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. 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. "In exercise of power under Order XXXIX Rule 2A(1) of the Code of Civil Procedure, the assets of respondents No.1 to 13 are hereby attached. Respondents No.1 to 13 are directed to file an affidavit of their assets as on today in Form 16A, Appendix E under Order XXI Rule 41(2) of the Code of Civil Procedure within 30 days. Respondent No.1, 2, 12 and 13 are directed to file an additional affidavit in the format of Annexure B-1 and respondents No.3 to 11 are directed to file an additional affidavit in the format of Annexure A-1 to the judgment of M/s Bhandari Engineers & Builders Pvt. Ltd. v. M/s Maharia Raj Joint Venture along with the documents mentioned therein within 30 days," the Court had held. 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. "The respondents are directed not to take any further action in violation of the interim order dated 25th October, 2020. The respondents are further directed to approach all the competent authorities for recall of the orders passed on their applications in violation of the interim order dated 25th October, 2020 within two weeks. The respondents are directed to file an affidavit to place on record the actions taken by them after 25th October, 2020 and the present status of all those actions at least three days before the next date of hearing. Respondents No.3 to 11 shall remain present before this Court on the next date of hearing," the Court had directed Future Group Companies and its Promoters. With the retirement of Justice Nariman yesterday, the new SLP filed by Future Coupons will be heard by a bench different from the one which considered the previous Amazon-Future Retail case.Case Title: Future Coupons Private Limited Vs. Amazon.Com Nv Investment Holdings LLC| Diary Number 18739| 2021

Amazon-FRL Dispute : Future Coupons Move Supreme Court Against Delhi HC Single Bench Order Attaching Assets

Shruti Kakkar

A fresh round of litigation in the Amazon-Future Group-Reliance dispute is on the cards.

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