Max Healthcare approaches Bombay High Court against arbitrator's interim order in dispute with Care Hospitals
Max Healthcare approaches Bombay High Court against arbitrator's interim order in dispute with Care Hospitals
The plea is scheduled to be heard on 1 September
Max Healthcare has approached the Bombay High Court against an interim order issued by a retired judge Justice SJ Kathawalla, the court-appointed arbitrator, in the contractual dispute between Max Healthcare, Care Hospitals,s and TPG Inc.
Passed recently, the arbitrator's order denied urgent interim relief to Max and refused to grant status quo concerning third-party rights.
Dissatisfied with the arbitrator's decision, Max pleaded in front of the high court once again. It filed an appeal against the order.
The dispute originated when Max Healthcare sought to protect its rights under a term sheet signed with Care Hospitals, Touch Healthcare, Quality Healthcare, and Evercare Group Management, with the intention of acquiring the hospital chain.
While Quality Care operates Care Hospitals, Touch Healthcare and Evercare are entities associated with TPG, a US-headquartered fund.
Before arbitration proceedings began, Max filed a petition under Section 9 of the Arbitration and Conciliation (A&C) Act, 1996, to safeguard its contractual rights.
However, in May, Justice Milind Jadhav directed the parties to resolve their issues before an arbitrator. He appointed Justice Kathawalla as the sole arbitrator with instructions to rule on Max's interim application under the A&C Act for relief within two weeks.
Max's urgency stemmed from its contention that the Care Group had already assigned third-party rights to another company. This allegedly breached the binding term sheet. Thereafter, Max sought an order to maintain the status quo on third-party rights during the ongoing arbitration.
Max Healthcare is represented by senior advocate Janak Dwarkadas. He is supported by a legal team from Nishith Desai Associates, led by partner Vyapak Desai.
Care Hospitals is being guided by senior advocate Darius Khambata, with legal assistance from the Shardul Amarchand Mangaldas team, led by partner Meghna Rajadhyaksha.
