Enforceability of emergency Award hearing before Delhi HC has been stayed by SC

Elisha Vaswani

On 22^nd March, a division Bench of the Delhi High Court stayed the order which enjoined attachment of properties of Kishore Biyani and the Future Group companies.

The Bench comprised of Justice Rohinton Fali Nariman, Hrishikesh Roy and BR Gavai granted stay after hearing the appeal filed by Amazon.

The Plea challenged the order passed by a Division Bench of the Delhi High Court staying the Single Judge order which had instruced the attachment of Future Group companies along with properties owned by Kishore Biyani.

The Court has listed the matter for hearing on 4^th May, 2021.

As observed by Justice JR Midha, Future Coupons, Kishore Biyani, Future Retail as well as other promoters and directors had violated an Emergency Award. The order was a direct consequence of this violation.

Justice Midha further directed Future Group to refrain from taking any action which may proceed the deal with Reliance, reason being, the Emergency Arbitrator had befittingly invoked the doctrine of ‘Group of Company’ with respect to the Future Group companies.

The division Bench of Chief Justice DN Patel and Justice Jasmeet Singh stated, “We hereby stay the single judge order dated March 18, 2021 till next date of hearing.”

Being aggrieved by this stay Amazon filed its appeal before the Supreme Court. Amazon challenged the order on grounds that the order pertains exclusively to Future Retail and does not apply to the other companies.

The submissions put forth also made a fair reference to provisions of appeal as granted under the Arbitration and Conciliation Act, “It is trite law that if an order is passed under the Act, it is appealable only under the provisions of the Act and not under any other law.”

Amazon further contended that the Division Bench, has disregarded the settled principle that the Act is complete and provisions of appeal are well accounted for.

On this contention alone, Amazon concluded that if no appeal is allowed against a specific order under S.37 of the Act then an appeal shall not be maintainable under other provisions of law as well.