Companies

Amazon, Future group hail SC decision to stay proceedings

Our Bureau Mumbai | Updated on September 10, 2021

All eyes now on the Singapore arbitrator’s final order

Both Amazon and Future group welcomed the decision by the Supreme Court to stay proceedings related to the ₹25,000-crore Reliance-Future Retail deal.

“We welcome the order of Hon’ble Supreme Court. Given the imminent announcement of the order of Arbitral Tribunal, the Hon’ble Supreme Court order stays all proceedings before the Delhi High Court and directs all regulators( like NCLT) to not pass orders in the Future-Reliance Deal for the next 4 weeks,” said an Amazon spokesperson.

A source close to the Amazon camp said: “The Emergency Arbitrator order has not been touched by the SC. Effectively, the deal with Reliance is stalled for now.”

Relief for Future’s promoters

Future Retail had moved a special leave petition in the Supreme Court in order to save the assets of its promoters and directors from being attached as directed by the single-judge Bench of the Delhi High Court. The SC also stayed the attachment proceedings providing relief to Future Group promoters.

“The Supreme Court has taken cognizance of the fact that arguments before Singapore International Arbitration Centre (SIAC) in respect of vacation of the interim award have concluded and therefore, stayed the enforcement proceedings before the HC as well asked regulatory bodies to refrain from passing final orders for four weeks. This will definitely come as a sigh of relief to the promoters of Future Group,” said Kshitiz Arya, Consultant, AnantLaw.

The Supreme Court order in the Amazon versus Future Retail means a blanket stay on all the proceedings in the Indian courts, including the NCLT, at least for the next four weeks. It also stalls the Future Retail and Reliance Deal until the SIAC passes its final order.

The emergency arbitrator under the aegis of Singapore International Arbitration Centre (SIAC) had earlier passed an interim award restraining Future Group from proceeding with the proposed amalgamation of Future Retail Ltd with the Reliance group. The defiance of the interim order by Future Group resulted in the attachment of assets of Future Group companies and its promoters by the Delhi HC.

All eyes are now on the SIAC final order. Sources have said that the order is likely to come within the next three weeks.

Published on September 09, 2021

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