Amazon-FRL Case : Delhi High Court To Proceed With Single Bench Order If No Stay Granted By SC To Future Group

While dealing with a plea seeking compliance of the single judge bench order allowing Amazon's application to enforce the emergency award against Future-Reliance deal, the Delhi High Court has told Future Group that it will proceed with order's compliance if stay is not granted by the Supreme Court within four weeks.

The development came atter Justice Suresh Kumar Kait was informed by Senior Advocate Parag Tripathi, appearing for Future Coupons Pvt Ltd and other respondents that they have filed Special Leave Peititons in the Supreme Court against the single judge order dated March 18, 2021 which are about to be heard by the Apex Court in coming weeks.

Senior Advocate Darius Khambata, appearing for FRL informed the Court that he is in the process of filing an SLP which will be completed in a day or two. He therefore requested to keep the matter after two or three weeks.

While adjourning the matter to September 16, the Court ordered thus:

"I hereby make it clear that if before the next date of hearing, they fail to get any stay order before the Supreme Court, then this court shall proceed with the matter regarding compliance of order dated 18 March 2021 passed by court."

On the other hand, it was submitted by Senior advocate Gopal Subramanium appearing on behalf of Amazon, that Justice Midha's order was effective and has to be complied with in view of the Supreme Court's decision.

Justice JR Midha vide order dated March 18 held that Future Group had raised a vague plea of nullity and went ahead to held that the Amazon's investment does not violate any law. In view of this, the Court rejected the contentions of the Future Retail Group with a cost of Rs. 20 lakhs.

The Court went ahead to hold that the respondents have deliberately and willfully violated the interim order dated 25th October, 2020 and are liable for the consequences enumerated in Order XXXIX Rule 2A of the Code of Civil Procedure.

The Court also held that the property of Respondents no. 1 to 13(Future group companies and its promoters including Kishore Biyani) be attached. Moreover the respondents are directed by the Court to file additional affidavits indicating the details of their assets and property.

It was also held that the Emergency Arbitrator had rightly invoked the 'Group of Company' doctrine in relation to the Future Group companies.

In view of this, the Court also issued show cause notice to Respondents as to why they shouldn't be detained in civil prison for violation of the order dated 25th October, 2020.

In another development, the Supreme Court earlier this month 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.