NEW DELHI—A Delhi court has halted arbitration proceedings between Indian conglomerate Future Group and its estranged U.S. partner Amazon.com in light of the national antitrust agency’s suspension of a 2019 deal between the two sides. The decision on Wednesday is a setback for U.S. e-commerce giant Amazon, which had successfully used the terms of its 2019 investment in a Future unit to block the Indian company’s attempt to sell retail assets to a rival. But after the Competition Commission of India (CCI) suspended the 2019 deal last month, citing suppression of information by Amazon while seeking clearances, Future argued there was no legal basis for the arbitration between the two sides to continue in Singapore. A two-judge bench led by Chief Justice D. N. Patel of the Delhi High Court agreed with Future’s arguments, putting the arbitration proceedings on hold. If the proceedings are not halted, Justice Patel said this …