Supreme Court Orders Stay On Proceedings Brought By Amazon Against Future Group
The Supreme Court of India has ordered a stay on the enforcement proceedings against Future Group and its promoters regarding the deal with Mukesh Ambani's Reliance Retail Ltd.
The apex court noted that the arbitral tribunal at Singapore is likely to give its decision soon on Future Group's plea to vacate the emergency award. And that to balance the interests of both parties, it will be fit to stay all the proceedings before the Delhi High Court for the time being.
Noting Future Group and Amazon's consent for this, the top court directed regulatory authorities like SEBI, the National Company Law Tribunal and the Competition Commission of India to not pass any final orders on Future Group-Reliance Retail deal.
After the apex court upheld the validity of the emergency arbitrator's interim order, Amazon.com NV Investment Holdings had approached the Delhi High Court to seek compliance of Justice JR Midha's March order.
Justice Midha had found the emergency arbitrator’s order against Future Group to be valid and enforceable. He had asked Future Retail and its promoters to seek recall of regulatory approvals granted for the deal with Reliance Retail in violation of the emergency arbitrator’s order. The court had also ordered punitive measures against Future Group entities and the promoters on grounds that they willfully violated the order of the emergency arbitrator.
After the hearing on Aug. 17, the Delhi High Court had told Future Group to either get a stay on these directions from the Supreme Court or it will start hearing the issue of compliance with the emergency arbitrator's order.
Meanwhile, Future Group had filed a special leave petition before the apex court saying the order by Justice Midha went beyond the scope of the order of the emergency arbitrator. Senior Advocate Harish Salve told the apex court on Thursday that Future Group was not granted adequate hearing by Justice Midha before he proceeded to pass the orders.
The impugned order is also illegal and bad in law in as much as the learned single Judge foreclosed the issues pending before the arbitral tribunal and thereby, in an execution petition, interfered with the arbitration proceedings.Appeal in the Supreme Court by Future Coupons Pvt.
The top court on Thursday issued a notice on the plea by Future Group. and will hear the matter in four weeks.