The Supreme Court on Monday stayed all further proceedings before a single judge and division bench of the Delhi High Court relating to the dispute between Amazon and Future Retail on the proposed Rs 24,713-crore takeover by Reliance Retail of the Future group’s retail and wholesale businesses that has been contested by Amazon, which claimed it had prior rights over the Kishore Biyani retail empire.

The apex court indicated it would pass final orders on all matters connected with the dispute.

This raises the question on the validity of the order of the Singapore arbitrator that supported Amazon against Future Retail. The order was passed on October 25, 2020 and expires next week on April 24.

Analysts said in the present case the validity of the award, would not arise since the matter is pending adjudication before the apex court as also the high court.

As a norm, when the matter is pending adjudication before any court, the validity of the award or a statutory limitation period even if it comes to an end, would not trammel the powers of the court from dealing with the issue.

In other words the validity of such limitation period of six months would become irrelevant and infructuous since the court is seized of the matter, the analysts added.

“Having heard learned senior counsel appearing for all parties, further proceedings before the single judge as well as the division bench of the high court shall remain stayed,”the apex court said in a written order.

“Learned counsel is permitted to file counter affidavit within a period of two weeks from today. Rejoinder affidavit within one week thereafter,” the apex court said in a written order.

On February 22, the top court had restrained the National Company Law Tribunal (NCLT) from passing any final order on the Future-Reliance deal.

“The matter will anyway end up here? Why don’t we then finish hearing?” Justice R.F. Nariman heading a three bench asked while staying the proceedings before the high court on the special leave petition filed by Amazon.

Amazon has filed the special leave petition (SLP) in the apex court challenging the March 22 order passed by a division bench of the Delhi High Court which had stayed a single judge Justice J.R.Midha’s order by which he had held that the award passed by the Singapore-based emergency arbitrator was binding on the FRL-Reliance Group.

While Amazon is being represented in the Supreme Court by senior advocate Gopal Subramanium, advocate Harish Salve is appearing for Future Retail.

The bench also comprising Justices B.R.Gavai and Hrishikesh Roy was of the tentative view since the various proceeding before the high court and the NCLAT were in any case likely to be challenged before it, it would be in the fitness of things for the top court to pass final orders on the issue.

“…We will stay further proceedings before the Single Judge & Division Bench. Meanwhile pleadings be completed & matter will come up with other matter on 4th May…” the bench said.