New Delhi– The Supreme Court on Thursday stayed all proceedings before the Delhi High Court on Amazon’s petition seeking enforcement of Singapore emergency arbitrator’s (EA) award, which restrained the Future Group from going ahead with its Rs 24,731 crore merger with Reliance Retail.
A bench headed by Chief Justice N.V. Ramana said: “Stay all further proceedings before the Delhi High Court and all other authorities – CCI, NCLT and SEBI – not to pass any final order for four weeks.”
The top court has scheduled the hearing in the matter after four weeks, awaiting the EA’s decision on Future’s objection to proceedings by Amazon.
The top court passed the order after hearing detailed arguments by senior advocates Harish Salve and Mukul Rohatgi for the Future Group and senior advocate Gopal Subramanium for Amazon. The top court took into consideration the submissions advanced by counsel for the parties and the fact that the parties have approached the Singapore International Arbitration Centre for vacating the stay passed by the emergency arbitrator and the arguments in the said matter have been concluded and the order is going to be pronounced shortly.
“We think it fit to balance the interest of both the parties by staying all further proceedings before the Delhi High Court for the time being. Ordered accordingly. We further direct to all the authorities i.e. NCLT, CCI and SEBI not to pass any final order for a period of four weeks from today. This order has been passed with the consent of both the parties. List these matters after four weeks,” said the top court in its order.
On September 3, the Supreme Court had said it will give a date on Future Retail Ltd’s (FRL) fresh appeal challenging the Delhi High Court order, which asked it to implement its earlier direction restraining the firm from going ahead with its Rs 24,731 crore merger with Reliance Retail.
Senior advocates Salve and Rohatgi sought early hearing on the appeal as the High Court would go ahead with the enforcement of the EA’s award, if stay is not granted in its favour by the apex court.
On August 17, the high court asked the FRL to implement the earlier single-judge bench order restraining it from going ahead with the deal. The high court passed the order while e-commerce giant Amazon, seeking enforcement of the award by Singapore’s EA restraining FRL from going ahead with the deal.
In the absence of stay from the top court, the high court had noted that it has no option but to enforce the order passed by its single judge on March 18.
In March, a single judge bench of the high court besides restraining FRL from going ahead with its deal with Reliance Retail, had imposed costs of Rs 20 lakh on the Future Group and others associated with it. The judge had also ordered attachment of their properties.
The top court, on August 6, delivered a judgment favouring Amazon by upholding Singapore EA’s award, restraining the Rs 24,731 crore FRL-Reliance Retail merger deal is valid and enforceable under Indian arbitration laws. (IANS)
