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Future-Reliance Retail deal: SC stays all proceedings in Delhi HC

Future-Reliance Retail deal: SC stays all proceedings in Delhi HC

The SC bench headed by Chief Justice N V Ramana, also instructed the statutory authorities of the likes of CCI, NCLT, and SEBI not to pass any final order regarding the merger deal for next four weeks

Supreme Court has stayed Delhi HC proceedings on enforcement of Emergency Arbitrator's award restraining Future Retail from going ahead with merger deal with Reliance Retail Supreme Court has stayed Delhi HC proceedings on enforcement of Emergency Arbitrator's award restraining Future Retail from going ahead with merger deal with Reliance Retail

The Supreme Court (SC) on Thursday stayed all proceedings before the Delhi High Court (HC) for four weeks pertaining to the enforcement of an award by Singapore's Arbitrator (EA) restricting Future Retail Ltd. (FRL) from moving forward with its Rs 24,731 crore merger deal with Reliance Retail. 

The SC bench headed by Chief Justice N V Ramana also instructed the statutory authorities of the likes of Competition Commission of India (CCI), National Company Law Tribunal (NCLT), and Securities and Exchange Board of India (SEBI) not to pass any final order regarding the merger deal for next four weeks.

Also Read: Reliance Retail moves NCLT for shareholder meet to approve Future deal

It considered the statements of senior advocates Harish Salve and Mukul Rohatgi, appearing for FRL and Future Coupons Private Ltd (FCPL) respectively, that the arbitrator has reserved the final verdict in the case after hearing both sides.

Senior advocate Gopal Subramanium, appearing for US-based e-commerce giant Amazon which has challenged the merger, said that it was not interested in any punitive action against FRL, FCPL and their Directors and consented to passing of the order staying the proceedings before the Delhi High Court.

The FRL and FCPL have moved the top court against the Delhi High Court order of August 17 which said that it would implement the earlier order by its single judge restraining FRL from going ahead with the deal in pursuance of the EA's award.

Also Read: Future Retail files new case in Supreme Court against Amazon over $3.4-bn deal

The High Court had also ordered attachment of properties.

Amazon dragged Future Group to arbitration at Singapore International Arbitration Centre (SIAC) in October last year, arguing that FRL had violated their contract by entering into the deal with rival Reliance.

On August 6, the SC gave the verdict in favour of Amazon and held that Singapore EA's award, restraining the Rs 24,731 crore FRL-Reliance Retail merger deal, is valid and enforceable under the Indian arbitration laws.