Division Bench sets aside order of Single Bench which had dismissed the petition under section 9 of the Arbitration & Conciliation Act, 1996 filed by UT of J&K against IFFCO Tokyo, seeking direction restraining it from opting out of the Contract of Insurance between the Petitioner & Respondent for Implementation of Ayushman Bharat- Pradhan Mantri Jan Arogya Yojana & Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana – SEHAT in the Union Territory of J&K, and to undertake its contractual liability in the interest of patient care and public at large.

The Ld. Single Judge vide judgement dated 02.02.2024 dismissed the same while observing, “Thus, in the light of what has been stated hereinabove coupled with the settled legal proposition of law, the present petition filed by the petitioner under Section 9 of the Arbitration and Conciliation Act, 1996 is held to be without any merit and the same is accordingly, dismissed in limini along with connected application”.

Aggrieved by the said dismissal UT filed an appeal in terms of the provisions of Section 37 of the Arbitration and Conciliation Act,1997. The Division Bench after hearing the parties at length set aside the judgement of Single Bench vide its order dated 07.03.2024 and directed that Single Bench to decide the controversy raised in the present Application, afresh.