Delhi HC vacates stay order on Future-Reliance deal

In yet another twist in the Future Retail-Amazon row, the divisional bench of the Delhi High Court has stayed Justice Midha’s order upholding the interim award of the Singapore International Arbitration Centre’s (SIAC) Emergency Arbitrator. SIAC’s interim award was against the Rs 25,000-crore asset sale between Future Retail and Reliance. Amazon has said it will file another application in the Supreme Court to implement Justice Midha’s order.

The division bench, including Chief Justice D N Patel and Justice Jasmeet Singh, stayed the attachment of assets of the promoters and directors of the Future Group.

The judges issued notice to Amazon seeking a response on Future Group's appeal challenging the single judge's March 18 judgment on the deal. 

“Detailed reasons have been given by the Ld. Single Judge in his order dated 18.03.2021. Counsel for Amazon has submitted that they're going to file another application before SC for execution of this order".

Senior counsel, Harish Salve appeared on behalf of Future Retail, who also sought a stay on Justice Midha’s order, who also imposed a fine of Rs 20 lakhs on Future Group and its promoters, including Kishore Biyani, for violating the EA’s interim award. 

Salve further said this matter was being heard in the top court of India. Amazon had filed a Special Leave Petition (SLP). According to the Supreme Court’s interim order in the said matter, NCLT is allowed to continue its proceedings. However, it has been directed not to pass a final order in the matter to sanction the scheme.

Alongside, the arbitration procedures in SIAC are likely to commence by the end of this month, as all the parties are filing their submissions.

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