Get a stay from SC or comply, HC tells Future on Reliance deal

The Delhi High Court on Tuesday said it will implement the single-judge order restraining Future Retail (FRL) from going ahead with the ~24,713-crore deal with Reliance Retail to sell its business, which was objected to by Us-based e-commerce giant Amazon, in case no stay is obtained from the Supreme Court (SC) within four weeks.

Justice Suresh Kumar Kait, hearing Amazon's plea for enforcement of the award by Singapore’s Emergency Arbitrator (EA) restraining FRL from going ahead with the deal, said that in the absence of any stay from the apex court, he has no option but to enforce the order passed by Justice JR Midha on March 18.

“Either get a stay within 23 weeks on March 18 order or comply with the order. This court has no third option,” the judge said.

Listing the matter for further hearing on September 17, the court said: “I make it clear that if before the next date of hearing the respondents fail to get any stay order, this court shall proceed with the matter for implementation of the order dated 18.03.2021.” Senior Advocate Parag Tripathi, representing Future Coupons (FCPL) and other related parties, said that a special leave petition (SLP) against the March 18 order has already been filed before the SC by his clients.

Senior Advocate Darius Khambata, representing FRL, said that his client has moved an application before the arbitration tribunal and will also file an appeal before the apex court.

Considering that the March 18 order on the legality of the emergency award was upheld by the Supreme Court on August 6, his clients still had time till August 20 to comply with the directions in terms of the order, he added.

“Simply filing SLP will not help you. You get the order of stay. I have only one option i.e to get the order implemented,” the court observed.

Senior Advocate Gopal Subramanium, appearing for Amazon, argued that in view of the SC’S decision, Justice Midha’s order was effective and has to be complied with.