P&A Law Offices Secures Victory for Uphealth Holdings in Arbitration against Glocal Healthcare Systems
P&A Law Offices has emerged triumphant in representing UpHealth Holdings, Inc. in an arbitration seated in Chicago against Glocal Healthcare Systems Private Limited and its promoters. The arbitral award, dated 15 March 2024, issued by an ICC Tribunal comprising Mr. V.K Rajah, Ms. Carolyn Lamm, and Mr. Promod Nair, has ordered damages amounting to USD 110 million, inclusive of arbitration costs, in favor of UpHealth Holdings, Inc. (“UpHealth”).
The dispute stemmed from a Share Purchase Agreement (“SPA”) between UpHealth and Glocal Healthcare Systems Private Limited (“Glocal”), an Indian company, along with its shareholders, including Mr. M. Damodaran, Mr. Syed Sabahat Azim, Mr. Gautam Choudhary, and Ms. Richa Azim (collectively, the “Respondents”). The ICC Tribunal found the Respondents to be in breach of the SPA, which was executed for UpHealth’s acquisition of nearly 95% shareholding in Glocal.
The arbitration proceedings were initiated due to various breaches committed by the Respondents, including their failure to transfer control of Glocal to UpHealth despite the latter being the majority shareholder. The Respondents further exacerbated the situation by filing multiple legal actions in Indian courts, aiming to obstruct UpHealth and its management. Despite their efforts, the Respondents were unsuccessful, except for filing FIRs with the local police.
An Emergency Arbitrator (“EA”) appointed by the ICC issued certain directives in December 2022, which the Respondents failed to adhere to. Subsequently, the Calcutta High Court, in AP 809 of 2022, issued a Section 9 Order on 23 August 2023, upholding the EA Order and dismissing the Respondents’ objections on arbitrability. The High Court emphasized the arbitrability of disputes raised under the SPA and underscored the competence of the Arbitral Tribunal to address jurisdictional challenges.
Despite their initial participation at the Emergency Arbitration stage, the Respondents chose not to appear in the arbitral proceedings. Instead, they resorted to written correspondences, inundating the Tribunal with voluminous documents. The Tribunal took note of this behavior, highlighting the obstructive steps taken by the Respondents and their persistent refusal to actively participate in the proceedings.
“The Tribunal had punctiliously attempted to ensure that the Respondents were kept informed about all steps being taken in the proceedings and afforded several opportunities for them to participate,” noted the Tribunal in its award.
UpHealth’s legal representation before the Arbitral Tribunal was led by DLA Piper and P&A Law Offices. “Mr. Anand Pathak (Managing Partner) and Mr. Vijay Purohit (Partner) appeared before the Arbitral Tribunal to present arguments on aspects of Indian law, supported by a team of lawyers comprising of Shivam Pandey (Principal Associate), Shyra Hoon (Associate) and Nav Dhawan (Associate),
This triumph represents another significant milestone in P&A’s distinguished arbitration practice, enhancing their standing as frontrunners in the field. Notably, P&A has recently secured remarkable victories in Investment Treaty Arbitration cases and International Commercial Arbitrations, underscoring their dedication to securing favorable results for their clients. Their track record dates back to renowned cases such as the Daiichi Sankyo arbitration and the recent arbitration involving Amazon and Future Retail, among others.