In A Setback To Rs 24,713 Crore Reliance-Future Deal, Delhi HC Upholds SIAC Order Restraining Sale

Delhi High Court has upheld the Singapore International Arbitration Centre's (SIAC) order barring Future Retail from continuing with the sale of its company assets to Reliance Retail.

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Mumbai: In a setback to the Rs 24,713 crore Reliance-Future deal, the Delhi High Court on Thursday upheld the Singapore International Arbitration Centre's (SIAC) order barring Future Retail from continuing with the sale of its company assets to Reliance Retail, which US-based e-commerce giant Amazon challenged.

Justice JR Midha held the Kishore Future Group wilfully disobeyed the SIAC order and directed Kishore Biyani-led Future Retail not to take further action on the deal.

"The respondents are directed not to take any further action in violation of the interim order dated 25th 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 25th October 2020 within two weeks. The respondents are directed to file an affidavit to place on record the actions taken by them after 25th October 2020 and the present status of all those actions at least three days before the next date of hearing," said single judge bench Justice JR Midha in his order, reviewed by ABP News.

Ordering the Future Group and its directors to deposit Rs 20 lakh in the Prime Minister's Relief Fund to help financially disadvantaged senior citizens get COVID-19 vaccines, the High Court asked Mr. Biyani and others to appear before it on April 28.

The court directed attachment of properties of Kishore Biyani and others related to Future Group and asked them to show cause as to why they be not detained for three months under civil prison for violating the emergency arbitrator's order.

When asked for comments, Ashish K Singh,  managing partner of law firm Capstone Legal told ABP News, "The stay was granted by Supreme Court in an SLP in which interim order was the genesis. Now that the final order has been passed, it will undoubtedly have a bearing on the Supreme Court when hearing the matter later.
The Court has held SIAC interim award as enforceable, which means that both parties will have to wait for the final decision of the SIAC."

A Future Group spokesperson declined to offer any comment.

The Supreme Court, which is currently hearing an appeal against the Delhi High Court's interim order, had asked the National Company Law Tribunal  (NCLT)to continue hearing the case but not issue a final decision until further orders.

Meanwhile, Future Group has reportedly moved the SIAC urging to review its October ruling and exclude Future Retail Ltd (FRL) from the order.