Future Tense: Delhi HC rejects FRL plea to stay arbitration order, seeks Amazon’s response

Justice Suresh Kumar Kait sought response from US-based e-commerce giant Amazon which had challenged the merger before the Singapore arbitration tribunal under SIAC, and listed the appeals by Future Coupons Pvt Ltd (FCPL) and Future Retail Ltd (FRL) for further hearing on January 4. 

Senior counsel Harish Salve, appearing for FRL, urged the court to pass an interim order clarifying that an earlier order passed by the Supreme Court which stayed all proceedings in relation to the enforcement of the EA would remain in force despite the subsequent order passed by the duly constituted arbitration tribunal. 

I want the court to clarify which order will prevail. That (Supreme Court order) was a consent order. This order is in place today. After this, the tribunal order was passed. What is the interim order that I’m seeking? That the Supreme Court order will continue to operate... I don’t want to be told that the tribunal order is in force, he submitted. 

Senior counsel Parag P Tripathi, representing FCPL, also urged the high court to reiterate the order of the Supreme Court. 

Kishore Biyani and 15 others including FRL and FCPL have been embroiled in a series of litigations with Amazon, an investor in FCPL, over the deal with Reliance. Following the EA, subsequently, a three-member arbitral tribunal was constituted to decide the issues arising from the deal. 

During the hearing, the court observed that in view of the pendency of related appeals before the apex court, it would need a clearance to proceed with the fresh appeals. 

How can you expect interim order to be passed by this court? Supreme Court order says proceedings stayed... Let us get clearance from Supreme Court that this is the position now (that) this subsequent order was passed, the judge said. 

The court further observed that the order passed by another judge of the high court earlier this year, which had upheld the EA, was yet to be set aside and only enforcement proceedings had been stayed.