Kolkata-headquartered Glocal Healthcare Systems has expressed its disagreement with the ruling of the International Court of Arbitration, insisting that they will not comply with the order to pay $110.2 million in damages to UpHealth Holdings. Glocal Healthcare has asserted that the case at hand requires a criminal investigation and revolves around matters that are inherently not suitable for arbitration. The company highlighted that an ICC Tribunal in Chicago, Illinois, issued a contentious award against them, despite the presence of criminal fraud allegedly committed by UpHealth Holdings Inc and others, currently under investigation by relevant authorities in the US and India.
According to Glocal Healthcare, the tribunal's decision to award damages to UpHealth Holdings Inc was based on the claim of loss of control, a transfer that was purportedly part of a fraudulent scheme orchestrated by UpHealth Holdings and its associates. Glocal clarified that there was no evidence of misrepresentation by their management or shareholders. While maintaining that they had consistently communicated the need for a criminal probe into the matter, Glocal criticized the tribunal's action as lacking subject matter jurisdiction and contrary to legal procedural standards. The company emphasized that participation in proceedings that they deemed null and beyond the scope of arbitration principles went against established legal norms.
Aside from the arbitration dispute, Glocal Healthcare has lodged FIRs against UpHealth Holdings and initiated legal actions in the Calcutta High Court and a commercial court in Kolkata. The FIRs detailed allegations of unauthorized activities carried out by UpHealth Holdings, including misrepresentation, unauthorized contract signings on Glocal's behalf, devaluation of assets, and financial misconduct. Glocal also accused UpHealth Holdings of breaching privacy laws by unlawfully accessing and transferring sensitive data belonging to the company. In response, Glocal has demanded legal recourse to recover misappropriated funds, reclaim stolen data, and regain control over their accounts and communications.
On the other hand, UpHealth Holdings has countered Glocal Healthcare's claims by accusing the company of violating contractual and statutory obligations, including providing misleading information about its value during negotiations. UpHealth stated that they had invested a substantial amount to acquire a significant stake in Glocal but were allegedly obstructed from assuming management control and accessing financial records. The discord between the two entities prompted UpHealth to initiate arbitration proceedings in Chicago under the ICC's supervision, citing adherence to the terms outlined in the Share Purchase Agreement from their previous dealings.