The Supreme Court has deferred the hearing of the Amazon-Future dispute by nearly two months to June 28 as it attends to more pressing matters amid the raging viral pandemic, two people aware of the matter said.
The top court was scheduled to hear the case between US-based e-commerce giant Amazon and Kishore Biyaniβs Future Group over the Rs.24,713 crore deal between Future and Reliance Industries Ltd (RIL) on Tuesday. βThe Supreme Court feels this case be kept on hold until the surge in Covid-19 cases is contained. Cases related to oxygen supply to hospitals, provision of Covid beds, vaccines and medicines are more urgent,β said one of the two people cited above, both of whom spoke on condition of anonymity.
The delay may come as a temporary setback for Amazon since it will buy Future Group and RIL two more months to work towards their proposed deal and realign operations, restructure businesses and transition Future Groupβs staff and retail stores such as Big Bazaar and fbb. The Supreme Court has so far not stopped the two parties from working towards the deal.
βThis may impact Amazon as Future Groupβs retail and wholesale stores will now give priority to RILβs retail orders over Amazonβs orders despite Amazonβs tie-up with Future,β one of the two people said.
With over 1,500 Big Bazaar and fbb stores in India, Future Group has the largest offline retail sales network in the country. βThe top court wants to focus its attention and resources only to resolve βsuper-urgentβ cases for the time being until the wave of this raging pandemic recedes,β the second person said.
According to the people cited above, the Singapore International Arbitration Centre (SIAC) may conduct its own hearing in the meantime and pass the final arbitration award before Indiaβs top court hears the matter. On January 5, the SIAC had formed a panel of top international lawyers to hear the case. βThis may be crucial because the contractual agreement between Amazon and Future Group says any dispute between the two parties will be subject to the jurisdiction of SIAC and its decision shall be binding. As per Indiaβs arbitration law, the decision of SIAC has to be considered legally valid and enforceable,β said the first person.
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