Max Healthcare has moved the Bombay High Court to challenge an interim order issued by retired Justice SJ Kathawalla, who was appointed as the court-appointed arbitrator in the contractual dispute involving Max Healthcare, Care Hospitals, and TPG Inc.
The arbitrator's order, passed on July 19, denied Max Healthcare's request for urgent interim relief and also refused to grant status quo with respect to third-party rights.
Unhappy with the decision, Max Healthcare has approached the Bombay High Court for the second time, filing an appeal against the arbitrator's order on July 27. The court has scheduled the plea to be heard on September 1.
The dispute arose when Max Healthcare sought to protect its rights under a term sheet signed with Care Hospitals, Touch Healthcare, Quality Healthcare, and Evercare Group Management, as part of their plan to acquire the hospital chain. Quality Care operates Care Hospitals, while Touch Healthcare and Evercare are entities associated with TPG, a US-headquartered fund.
To safeguard its contractual rights before the arbitration proceedings commenced, Max Healthcare filed a petition under Section 9 of the Arbitration and Conciliation Act.
However, on May 3, Justice Milind Jadhav directed the parties to address their issues before an arbitrator and appointed Justice Kathawalla as the sole arbitrator. The arbitrator was also tasked with ruling on Max Healthcare's interim application under Section 17 of the Arbitration Act, seeking urgent relief within two weeks.
Max Healthcare's urgency stemmed from its claim that Care Group had already assigned third-party rights to another company, allegedly violating the binding term sheet signed with Max Healthcare. Consequently, Max sought an order to maintain the status quo on third-party rights during the ongoing arbitration.
The appeal before the Bombay High Court seeks a reconsideration of the arbitrator's decision, aiming to secure necessary interim relief and protect Max Healthcare's rights in the contractual dispute.
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