Max Healthcare Legal Challenge

Max Healthcare Institute Limited had earlier this year moved the Bombay High Court under section 9 of the Arbitration and Conciliation Act, 1996 against Touch Healthcare Private Ltd, Quality Care India Limited, and Evercare Group Management Ltd in a matter pertaining to the sale of TPG-backed Care Hospitals to Blackstone.

The petition was filed seeking interim measures of “protection and preservation” in respect of the contractual rights available to Max prior to the commencement of arbitration against the respondents. These rights arose from the binding obligations of the respondents, following the term sheet entered into by Max with Evercare Group Management Limited in March.

Max is reported to have claimed that the term sheet gave it exclusivity in negotiations with Care up to1 2 April and included binding clauses on both parties. The owners of Care are alleged to have instead tapped Blackstone on 11 April in violation of the agreement.

The sole arbitrator, S.J. Kathawalla, a retired judge of the Bombay High Court in an order dated 19 July, declined to grant the interim relief sought by Max in its petition filed before the Bombay High Court. The arbitrator directed Max to file its statement of claim within two weeks from the date of the order, with further directions in the matter to be passed at the next hearing.

“The company is in the process of seeking legal advice in relation to the said order and will take appropriate actions, as required,” Max said in a filing with the Bombay Stock Exchange on 20 July.

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