Setback for Future Group as Delhi HC halts RIL deal
Hindustan TimesThe Delhi high court on Tuesday put the brakes on Future Retail Ltd’s $3.4 billion sale of its retail assets to Reliance Industries Ltd, acting on a petition by Amazon.com Inc, which has alleged that the deal was in violation of its own contract with Future. In an interim order, the court directed Future Retail to maintain status quo on the assets starting at 4.50 pm on Tuesday, until “the pronouncement of the reserved order”. In a statement, Amazon Inc. said, “We have utmost respect for the Indian legal system and appreciate the interim order of the Hon’ble Delhi High Court to uphold the enforceability of the Emergency Arbitrator’s order and maintain status quo.” While a RIL spokesperson declined to comment, Future Group in a statement said, “The company is legally advised that the basis of the interim award of the Emergency Arbitrator has been superseded by the judgement dated December 21, 2020 passed by the learned single judge, Justice Mukta Gupta. The Delhi high court rejected Future Retail’s submission that Amazon’s petition was not maintainable because an Emergency Arbitrator—the Singapore tribunal—cannot be considered an arbitrator under the Arbitration and Conciliation Act. Justice Mukta Gupta, on December 21, 2020, upheld the validity of the arbitrary order and declined to grant Future Retail’s plea to restrain Amazon from writing to statutory authorities and regulators about the arbitral award.