Delhi HC upholds Emergency Award passed against Future-Reliance deal, imposes Rs 20 lakh cost on Future

New Delhi [India], March 18 : The Delhi High Court on Thursday upheld the Emergency Award passed against Future-Reliance deal. The court also imposed costs of Rs 20 lakh on Future and directed that the fine should be deposited with the PM Relief Fund.
A single-judge bench of Justice JR Midha said that the Singapore arbitration order is enforceable and accepted Amazon's pleas against the deal, rejected Future Group's arguments, and said the order of emergency arbitrator was valid and enforceable under Indian law.
The Bench also said that Future Retail Group deliberately disobeyed orders and is liable to face action under the code of civil procedure. The Court also issued a show-cause notice to Future Retail and others, asking them why they should not be detained in civil prison.
The Court further directed Future Group's Directors to appear in person before April 28, the next date fixed for the hearing.
Earlier, Court had directed Future Retail Limited to maintain the status quo with respect to the deal with Reliance while granting interim relief to Amazon.
Justice Midha had said, "This Court is satisfied that immediate orders are necessary to protect the rights of the petitioner till the pronouncement of the reserved order. In that view of the matter, the respondents are directed to maintain status quo as of today at 4:50 pm till the pronouncement of the reserved order."
The court was hearing Amazon's plea where the petitioner had submitted that the respondents including Future Coupons Private Limited have deliberately and wilfully violated and are continuing further with the violation of the order dated 25 October 2020 of the Emergency Arbitrator. The petitioner has sought an immediate interim order to protect its rights till the pronouncement of the reserved order.
The respondents are objecting to the enforcement of the order dated October 25, 2020, passed by the Emergency Arbitrator on various grounds, inter alia, that the Emergency Arbitrator is not an Arbitrator/ Arbitral Tribunal; the order dated October 25, 2020, is not an order under Section 17( 1) and is not enforceable under Section 17(2) of the Arbitration and Conciliation Act, the respondent is not a party to the arbitration agreement and the order dated October 25, 2020, is a nullity, the court had said.
The court, however, said that "This court is of the prima facie view that the Emergency Arbitrator is an Arbitrator; the Emergency Arbitrator has rightly proceeded against the respondent; the order dated October 25, 2020, is not a nullity; the order dated October 25, 2020, is an order under Section 17(1) of the Arbitration and Conciliation Act."
"This Court is of the view that the order dated 25 October 2020 is appealable under Section 37 of the Arbitration and Conciliation Act. This Court is of the clear view that the order dated October 25, 2020 is enforceable as an order of this Court under Section 17(2) of the Arbitration and Conciliation Act. The detailed reasons shall be given in the reserved order," the court said.
The court also directed all the concerned authorities to maintain the status quo with respect to all matters in violation of the order dated October 25, 2020, and shall file the status report with respect to the present status within 10 days of the receipt of this order.
The Court directed that fine amount imposed against Future group should be deposited in PM Relief Fund and to be used for vaccination of below poverty line population.