Max Healthcare has moved the Bombay High Court against an interim order issued by retired Justice SJ Kathawalla, who was appointed as the court-appointed arbitrator in the contractual dispute between Max Healthcare, Care Hospitals, and TPG Inc.
The arbitrator's order, passed on July 19, denied urgent interim relief to Max Healthcare and refused to grant status quo concerning third-party rights.
Dissatisfied with the arbitrator's decision, Max Healthcare has approached the Bombay High Court for the second time, filing an appeal against the order on July 27. The plea is scheduled to be heard on September 1.
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. 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 arbitration proceedings began, Max Healthcare filed a petition under Section 9 of the Arbitration and Conciliation Act.
However, Justice Milind Jadhav, on May 3, directed the parties to resolve their issues before an arbitrator and appointed Justice Kathawalla as the sole arbitrator. The arbitrator was also instructed to rule on Max Healthcare's interim application under Section 17 of the Arbitration Act for urgent relief within two weeks.
Max Healthcare's urgency stemmed from its contention that Care Group had already assigned third-party rights to another company, allegedly breaching 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.
Senior Advocate Janak Dwarkadas, will represent Max Healthcare in court, supported by a legal team from Nishith Desai Associates, led by Partner Vyapak Desai. On the other side, Care Hospitals will be represented by Senior Advocate Darius Khambata, with legal assistance from a team at Shardul Amarchand Mangaldas, led by Partner Meghna Rajadhyaksha.
