SC: When the dispute is unable to be settled amicably, an arbitrator is be appointed for settling the matter

The Supreme Court on 04.10.2018, in Hindustan Antibiotics Limited v Maharashtra Housing And Area Development Authority (MHADA)& Ors, disposed of the appeal filed by the Appellant Company. The appeal had been made against High Court of Judicature at Bombay ‘s judgment where the petition filed by the appellant had been dismissed.

FACTS: The appellant being a Company involved in life saving drugs manufacturing  of Penicillin G” entered into a joint venture with a foreign company  in connection to the manufacturing business. Since, that did not flourish  well, the activities of the joint venture had to get closed. Later on, the  issue had been referred to the Board for Industrial & Financial Reconstruction  (BIFR) , that subsequently made a scheme of rehabilitation under  the Sick Industrial Companies (Special Protection) Act, 1985 (SICA). The issue rose between the appellant and the State through its Authority called ¬ Maharashtra Housing and Area Development Authority (MHADA).

A writ petition was filed before the High Court with a view to solve the disputes, wherein the Division Bench had dismissed the concerned  petition that was filed by the appellant .Being aggrieved by the order, an appeal was filed before the Apex Court .

DECISION OF THE APEX COURT: The Supreme Court of India disposed of the appeal, while opining that since all the parties to the concerned dispute were Public Undertakings or the State and its relevant agencies thus the matter was entitled to be solved amicably by the concerned parties. Later on, when the parties to the dispute had come up before the Court by duly expressing that it was not possible for them to come to a settlement and the matter ought to be referred to an arbitrator. As such the matter was referred to be settled by a sole arbitrator appointed by the court for passing an award .

https://www.sci.gov.in/supremecourt/2018/27565/27565_2018_Judgement_04-Oct-2018.pdf