The Delhi High Court on Thursday upheld Singapore based Arbitrator’s Emergency Award order against the Rs. 24,713 crore deal between Future Retail Limited (FRL) and Reliance Retail. The Court also directed attachment of properties of Kishore Biyani and others related to Future group.
It is a setback for Future Group which has been trying since last year to sell its retail business to Reliance Retail Ventures Limited (RRVL).
The Court was hearing a plea filed by Amazon to uphold the injunction on the proposed deal awarded by the emergency arbitrator appointed by the Singapore International Arbitration Centre (SIAC) on October 25, 2020.
The Court held that the order of the Emergency Arbitrator was valid and capable of being enforced under Indian law. It concluded that the respondents, Future Group entities had willfully violated the Emergency Arbitrator’s order. The court directed the Future Group and its directors to deposit Rs 20 lakh in the Prime Minister’s Relief Fund for providing Covid-19 vaccines to senior citizens who belong to the Below Poverty Line (BPL) category.
The Single Judge bench of Justice J.R. Midha directed Future Group to not take any further action on the deal and also asked Future Group’s Directors to appear in person at the next hearing in April.
“The respondents are directed not to take any further action in violation of the interim order dated 25 October, 2020. The respondents are further directed to approach all the competent authorities for recall of the orders passed on their applications in violation of the interim order dated 25 October, 2020 within two weeks. The respondents are directed to file an affidavit to place on record the actions taken by them after 25th October, 2020 and the present status of all those actions at least three days before the next date of hearing.” said the order.
Last month, the Supreme Court directed the NCLT to continue hearing the case but not give a final nod till further orders.