Future moves HC against status quo order on deal with Reliance
FRL’s appeal was mentioned before a joint registrar who allowed it to be listed for hearing today
NEW DELHI: Kishore Biyani-led Future Retail Ltd (FRL) moved the Delhi high court on Wednesday against its single judge order directing the company to maintain status quo on its ₹24,713 crore deal with Reliance Retail, which has been objected to by US-based e-commerce giant Amazon.
FRL’s appeal was mentioned before a joint registrar of the high court who allowed it to be listed for hearing on Thursday, a lawyer associated with the case said.
Justice J R Midha on Tuesday said the court was satisfied that an immediate interim order was required to be passed to protect the rights of Amazon.
“Respondents (FRL) and other respondents are directed to maintain status quo as on today at 4:49 PM till pronouncement of the reserved order,” the judge had said.
In August last year, Future had reached an agreement to sell its retail, wholesale, logistics and warehousing units to Reliance.
Amazon has approached the high court seeking direction to order enforcement of the award by Singapore’s Emergency Arbitrator (EA) restraining FRL
from going ahead with its ₹24,713 crore deal with Reliance Retail.
It has sought to restrain Kishore Biyani-led Future Group from taking any steps to complete the transaction with entities that are a part of the Mukesh Dhirubhai Ambani (MDA) Group.
Amazon.com NV Investment Holdings Llc, in its plea, has also sought detention of the Biyanis, directors of FCPL and FRL and other related parties in civil prison and attaching of their properties for alleged “wilful disobedience” of the emergency
arbitrator’s order.
The high court, which heard the matter for four consecutive days, reserved its order on Tuesday on the main petition and also directed all other concerned authorities to maintain status quo in relation to the matters which are in violation of the emergency award and to file status report with regard to the present status within 10 days.
While pronouncing the interim order, the high court said it was of the prima facie view that the emergency arbitrator is an arbitrator and he
has rightly proceeded against FRL and its order was not in nullity.
The court said it was clear that the October 25, 2020 order of the emergency arbitrator passing the award was enforceable and appealable under the relevant provisions of the Arbitration and Conciliation Act.
The high court directed FRL to file an affidavit stating the steps and actions taken by it from October 25, 2020, when the emergency award was passed, till now in connection with the deal with Reliance.
The high court had earlier
issued notices and sought responses of FRL, Future Coupons Pvt. Ltd (FCPL), Biyanis and other related parties on the petition by Amazon. Amazon has also sought to restrain Future Group from taking any steps to transfer or dispose of FRL’s retail assets or the shares held in FRL by the Biyanis in any manner without prior written consent of Amazon.
The Future Group and Amazon have been locked in a battle after the US-based company took FRL into the emergency arbitration over alleged breach of a contract between them.