Petition for Appointment of Sole Arbitrator in Dispute Over Assignment of Contract Rights.
08 November 2024
Arbitration Law >> Business & Commercial Law
The petitioner, a U.S.-incorporated company, filed a petition under the Arbitration and Conciliation Act, 1996 (Section 11) seeking the appointment of a sole arbitrator to resolve disputes arising from two agreements: the Exclusive and Perpetual License Agreement and the Share Subscription and Shareholders Agreement. The petitioner claims to have purchased the assets of Cryobank USA at a public auction in June 2010, including the rights under these agreements, thereby stepping into Cryobank USA's position. The respondents, however, argue that the license agreement was non-assignable, and they have not consented to the petitioner assuming Cryobank USA's rights, which, they contend, means there is no privity of contract.
The Court noted that the primary issue was whether an arbitration agreement existed between the petitioner and the respondents, and not the merits of the dispute. While the respondents contested the assignment of rights, the Court found no issue with the existence of the arbitration agreements in both the License and Share Subscription Agreements. The Court decided not to delve into the validity of the assignment but referred the matter to the Delhi International Arbitration Centre for the appointment of a sole arbitrator to resolve the dispute, keeping all contentions open for the arbitral tribunal to address.