Amazon-Future-Reliance Case: SC Stays All Proceedings Before Delhi HC
SC asked the NCLT, CCI, and SEBI to not pass any final order for four weeks related to the Future-Reliance deal.
The Supreme Court on Thursday, 9 September, stayed all the proceedings before the Delhi High Court pertaining to Amazon-Future-Reliance case, and also asked the National Company Law Tribunal (NCLT), Competition Commission of India (CCI) and Securities and Exchange Board of India (SEBI) to not pass any final order for four weeks related to the deal, reports said.
A single-judge bench of the Delhi High Court had earlier ordered that the assets of Future Group companies and its promoters be attached for violation of the emergency arbitrator award, LiveLaw reported.
The high court had also issued a show-cause notice for civil arrest of Biyani and other directors of Future Group and stayed the sale of assets of Future Group to Reliance Retail.
What Happened Today:
The SC issued a notice against Delhi HC's order of attachment of assets after considering statements of senior advocates Harish Salve and Mukul Rohatgi, who appeared for FRL and Future Coupons Private Ltd (FCPL), respectively, saying that the arbitrator has reserved the final verdict in the case after hearing both sides, LiveLaw reported
The bench said that it was passing the order taking into consideration that the Future group has approached the SIAC to vacate the interim order passed by the arbitrator and arguments have been concluded in that.
Moreover, senior advocate Gopal Subramanium, appearing for Amazon also expressed consent to the order passed by the Court and said, Amazon only wanted compliance of the award and has no interest in taking punitive action against the Future group.
The Future Group, in August 2020, had entered into an agreement with Reliance Retail to sell its retail, wholesale, logistics, and warehouse businesses to Reliance Retail Ventures.
Amazon legally refuted the deal, alleging that the deal breached some of Amazon’s pre-existing contracts with Future Group, and took the Future Group to arbitration at Singapore International Arbitration Centre (SIAC) in October 2020.
On 6 August 2021, the Supreme Court had pronounced its verdict in favour of the e-commerce company, Amazon, and upheld Singapore's Emergency Arbitrator (EA) award, which restrained the Rs 24,731 crore deal between Reliance Retail and Future Retail Ltd.
The apex court judgment had ruled the October order by the SIAC, which put the deal on hold after considering Amazon's objections, as valid.
(With inputs from PTI and LiveLaw)
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