Future-Amazon: Supreme Court sets aside Delhi High Court's refusal to stay SIAC award; remands matter for fresh consideration

The Supreme Court on Tuesday set aside the Delhi High Court order of October 29, 2021 refusing to stay the award passed by a Singapore International Arbitration Centre (SIAC) tribunal which had restrained Future Group from going ahead with its ₹24,731 crore merger deal with Reliance Retail [Future Coupons Pvt Ltd vs Amazon]..The Bench of Chief Justice of India NV Ramana and Justices AS Bopanna and Hima Kohli remanded the matter to the Delhi High Court to be considered afresh.The Court also set aside the single-judge order of the Delhi High Court dated February 2, 2021.The February 2 order had upheld the award of an emergency arbitrator, directed attachment of the properties and restrained Future Retail Limited from going ahead with the ₹24,713 crore merger with Reliance Retail."We set aside the order February 2, 2021 and October 29, 2021 and direct the judge to consider the case on its own merits without adhering to observations made herein," the apex court said..The top court said that opportunity provided to Future Coupons was insufficient, and cannot be upheld in the eyes of law."The natural justice is the sworn enemy of unfairness. It is expected of the Courts to be cautious and afford a reasonable opportunity to parties, especially in commercial matters having a serious impact on the economy and employment of thousands of people. Coming to the facts herein, the opportunity provided to the appellants herein was insufficient, and cannot be upheld in the eyes of law," the judgment said. .The judgment was delivered on a batch of pleas filed by Future Group firms against a Delhi High Court order declining stay on the tribunal's decision refusing to interfere with the Emergency Award (EA) of the SIAC.Through this EA, the SIAC tribunal had earlier granted relief to Amazon and prevented Future from going ahead with the ₹24,731 crore merger deal with Reliance Retail..Future Group companies had moved the top court against the Delhi High Court's order declining its plea for stay on the arbitration tribunal decision.Represented by Senior Counsel Mukul Rohatgi and Harish Salve, the companies had said during the hearing that the deal should be allowed to go through, failing which Future Retail Limited will "sink". Amazon, which has shares in Future Coupons, has opposed the deal citing violation of Future's contract with them..Pertinently, the Court in its judgment highlighted "a disconcerting aspect wherein the interim order enforcing the Emergency Award has adopted a standard beyond ‘prima facie view’, as required under law." "It is expected of Courts to be cautious while making observations on the merits of the case, which would inevitably influence the Arbitral Tribunals hearing the matters on merit," the top court opined..On October 21, 2020, a panel of arbitrators at the SIAC upheld the EA, after which the Delhi High Court declined to stay the same, prompting the present appeal before the top court..Besides Salve and Rohatgi, Future was represented by Naik Naik and Company, Advocates Ameet Naik, Madhu Gadodia and Abhishek Kale. The promoters were represented by advocates Rishi Agrawala, Karan Luthra, Pranjit Bhattacharya and advocate-on-record EC Agrawala.Senior Advocate Gopal Subramanium appeared for Amazon..[Read Order]