On Tuesday, the Bombay High Court upheld an interim order issued by the court-appointed arbitrator in the contractual dispute involving Max Healthcare, Care Hospitals, and TPG Inc. In the case of Max Healthcare v. Care Hospitals, Justice Manish Pitale upheld the arbitrator Justice SJ Kathawalla’s July 19 decision, which denied urgent interim relief and status quo concerning third-party rights to Max Healthcare.
Max Healthcare had approached the High Court on May 3, 2023, seeking protection of its rights outlined in the term sheet signed with Care Hospitals, Touch Healthcare, Quality Healthcare, and Evercare Group Management for the acquisition of the hospital chain. Quality Care operates Care Hospitals, while Touch Healthcare and Evercare are affiliated with the US-based fund TPG.
Filing a petition under Section 9 of the Arbitration and Conciliation Act to safeguard its contractual rights, Max Healthcare’s request was redirected to arbitration by Justice Milind Jadhav on May 3. Justice Kathawalla was appointed as the sole arbitrator and was instructed to decide Max’s Section 17 interim application for urgent relief within two weeks.
The arbitrator’s interim order on Max’s Section 17 application was issued, prompting Max Healthcare to approach the High Court for the second time on July 27 to contest the decision. Max argued that Care Group had assigned third-party rights to another company in violation of the binding term sheet, seeking an order for status quo on third-party rights.
Represented by Senior Advocate Janak Dwarkadas, briefed by a team from Nishith Desai Associates led by Partner Vyapak Desai, Max Healthcare pursued its case. Care Hospitals, on the other hand, was represented by Senior Advocate Darius Khambata, briefed by a team from Shardul Amarchand Mangaldas led by Partner Meghna Rajadhyaksha.
