HC lifts freeze on Future-RIL sale deal, setback to Am azon

The Delhi High Court on Monday stayed its single judge direction to Future Retail Ltd (FRL) and various statutory authorities to maintain status quo with regard to the Rs 24,713 crore deal with Reliance Retail.

A bench of Chief Justice D NP a tel and Justice Jyoti Sing hp ass ed the interim direction on FRL's appeal challenging the February 2 order of the single judge.

It said that statutory authorities, like National Company Law Tribunal, Competition Commission of India (CC I) and SEBI, cannot be restrained from proceeding in accordance with law with regard to the deal.

The bench also declined Amazon' s request to keep its order in abeyance for a weeks otha tit can explore appropriate remedies.

The court issued notice to Amazon and sought its stand on FRL's appeal by February 26 when it will commence day-to-day hearing of them atter.

Amazon had first filed a plea before the single judge for enforcement of the October 25,2020 Emergency Arbitrator( EA) award by the Singapore International Arbitration Centre (SIAC) res training FRL from going ahead with its Rs 24,713 cr ore deal with Reliance Retail.

In the interim or der on Monday, the division bench said it was staying the single judge order as firstly, FRL was not a party to the share subscription agreement( SSA) between Amazon and Future Coupons Pvt Ltd (FCPL) and the US e-commerce giant was not a par ty to the deal between FRL and Reliance Retail.

The bench further said it was of the prima f acie view that the shar e holding a greement ( SHA) betw een FRL and FCPL, the SSA between FCPL and Amazon and the deal betw een FRL and R eliance R etail "ar e dif ferent" and "ther efore, the g roup of companies doctrine cannot be invoked".

Another r eason gi ven b y the cour t for its interim or der was tha t ther e was prima f acie no r eason to seek a status quo or der bef ore the single judge.

The benc h said ther e w ere a lot of contentious issues in volved in th e matter and it was not going to adjudicate on them at this stage.

It al so said th at its observ ations were only prima f acie and the sing le judge ought not to be inf luenced b y them when pronouncing the order on Amazon's plea for enforcement of the October 25, 2020 Emerg ency Arbitrator ( EA) a ward b y the Sing apore International Arbitration Centre (SIAC) restraining FRL fr om going ahead with its Rs 24,713 cr ore deal with R eliance Retail.