In a win for Amazon, the Delhi High Court on Thursday upheld the emergency award against the $3.4 billion acquisition of Future Retail by Reliance Retail Ventures, a subsidiary of Reliance Industries.
Ecommerce giant Amazon had filed a petition with the Delhi High Court 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 order also called for a ‘show-cause’ notice to Kishore Biyani, CEO of Future Group and other respondents, for violating the order passed by the emergency arbitrator on October 25, 2020. The order passed by the single judge bench of Justice R Midha also levied a fine of Rs 20 lakh to be deposited by the respondents with the Prime Minister Relief Fund.
“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,” said the order. The order also asked Biyani and other respondents to be present at the next hearing in April.
In February, Amazon had challenged an order passed by a division bench of Delhi High Court which had stayed the direction of status quo passed by Justice JR Midha on February 2 till the pronouncement of his order in the case. The case is pending with the Supreme Court, which said that the National Company Law Tribunal (NCLT) can continue but not culminate its proceedings in the matter.
In a filing with the markets regulator, Future Retail said, “We are advised that this order does not come in the way of continuance of the ongoing NCLT proceedings, being inconsistent with the order dated 22nd February, 2021 of the Hon’ble Supreme Court.”