In a relief for the Future Group, the Supreme Court has set aside all previous orders passed by the Delhi High Court which had restrained the company’s proposed deal with the Reliance Group. The 3-judge bench of CJI Justice NV Ramana, Justice AS Bopanna and Justice Hima Kohli referred the Future Retail-Amazon case back to the Delhi High Court for a decision on its merits. The High Court will now decide on the enforceability of the arbitral award, Future Retail’s request to proceed with a deal with Reliance as well as Amazon’s plea to financially aid Future Retail.
Even as the apex court set aside a single-judge order of the High Court which had stopped Future Retail-Reliance deal in view of a restraint order passed by a Singapore-based Emergency Arbitrator, Amazon submitted that the stay on the deal should continue as the top court in 2021 upheld the applicability of a foreign arbitrator’s order in India.
The case before the High Court will be heard in view of the new developments in the case; which include a fresh attempt by Amazon to infuse capital into Future Retail, CCI’s withdrawal of nod to Amazon for its investment in Future Group and Future Group’s submissions that the company needs immediate financial aid to survive.
On a separate petition by Future Retail seeking more time to repay its lenders and avert classification as an NPA (non-performing asset), the top court has sought replies from 27 banks while asking them to take a realistic approach. The court is slated to hear Future Retail’s plea on 4th February, which has also sought permission to proceed with procedural formalities related to the proposed Reliance deal.
