The Delhi High Court on Monday stayed the single judge’s order restraining Future Retail (FRL) from going ahead with its $3.4-billion deal with Reliance Retail and directing the attachment of Future Group firms’ and founder Kishore Biyani’s properties in relation with Amazon’s plea asking for the enforcement of the emergency award.
A division Bench of Chief Justice DN Patel and Justice Jasmeet Singh said, “…we hereby stay the order of the single judge dated March 18, 2021 till the next date of hearing,” and listed the matter for further hearing on April 30.
Harish Salve, Future’s counsel, said the court ordered the stay even on the ad-interim order passed by the single judge, which was not stayed by the Supreme Court (SC) in appeal.
“There’s a finding of breach. This has gone much beyond... we were under the impression that the single judge would get reasons (for prima facie order)… SC in SLP (special leave petition) has directed that all these (National Company Law Tribunal, or NCLT) hearings can go on... this court’s order has not been stayed. Single judge’s order has to be stayed,” said Salve, according to law platform Bar & Bench.
Senior advocate Gopal Subramanium, who represented Amazon, argued that it was only right that the single judge’s matter be brought to the SC’s attention for further directions.
He contended that the matter is before the apex court and Amazon will not do anything that is inconsistent with the SC’s order.
Future said since the issues are pending before the SC in a SLP filed by Amazon, the division Bench also took on record the SC’s order, which records that the proceedings before NCLT will be allowed to go on without a final order of sanction of the scheme between Future and Reliance.
Senior advocate Iqbal Chagla, appearing on behalf of the Biyanis, argued that propriety demanded that since the SC was seized of the matter, the single judge ought not to have passed such an order, especially when the division Bench had stayed the earlier order.
The NCLT can hear the scheme in accordance with the SC’s directions, but cannot pass final orders till the apex court decides on Amazon’s petition.
Last week, the single judge upheld the emergency award passed against the Future-Reliance deal. In the order, Justice J R Midha restrained Future Retail from going ahead with the deal. The court also imposed a penalty of Rs 20 lakh on Future and ordered that the money go to the Prime Minister’s Relief Fund.
The court held that Future Retail, Future Coupons, founder and owner Biyani and others violated the emergency award. Issuing a show-cause notice to Biyani and others, it asked why they should not be detained in civil prison.
Jeff Bezos-led Amazon is locked in legal disputes with Biyani-headed Future. It has alleged that the retail conglomerate violated an agreement with the American e-commerce giant by agreeing to sell its assets to Mukesh Ambani-owned RIL last year.
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