In January 2024, Aarohan Pharma Private Ltd ('Aarohan'), a reputed pharmaceutical manufacturer, entered into a contract with Pentagon Lifesciences Ltd ('Pentagon') for the development and supply of a new line of oncology

CS Professional · Arbitration, Mediation and Conciliation · PYQS · December 2025
In January 2024, Aarohan Pharma Private Ltd ('Aarohan'), a reputed pharmaceutical manufacturer, entered into a contract with Pentagon Lifesciences Ltd ('Pentagon') for the development and supply of a new line of oncology drugs. The contract, valued at ₹150 crore, contained detailed provisions on regulatory approvals, manufacturing timelines, quality control standards, penalties for delay, variation in technical specifications and dispute resolution. Clause 21 of the agreement stipulated that disputes would be resolved through arbitration under the Arbitration and Conciliation Act, 1996, with Hyderabad as the seat and proceedings governed by CIAC Rules. By April 2024, disagreements surfaced as Aarohan alleged that Pentagon delayed release of milestone-based payments and failed to provide timely approvals for raw material sourcing protocols, leading to cost overruns. Pentagon countered that Aarohan had missed regulatory submission deadlines, used substandard excipients in certain trial batches, and ignored directions from the joint project monitoring committee. Quality inspections conducted by Pentagon revealed compliance defects in two pilot production runs, which Pentagon relied on to withhold further payments. Tensions escalated and after weeks of negotiation, the parties signed a Settlement Agreement on July 15, 2024. Pentagon agreed to pay Aarohan ₹30 crore in full and final settlement of all claims, while Aarohan agreed to transfer all partially developed product dossiers and trial data to another manufacturer appointed by Pentagon. However, the settlement did not expressly reaffirm or exclude the arbitration clause. In October 2024, Aarohan, aggrieved that the compensation did not cover its actual R&D and manufacturing expenses, issued a Notice of Arbitration invoking Clause 21 of the original contract. Pentagon objected, contending that the settlement agreement had superseded the original contract and extinguished the arbitration clause. Further, Pentagon challenged Aarohan's nominated arbitrator, citing the arbitrator's past professional ties with Aarohan's counsel. Aarohan then approached the Court seeking constitution of an arbitral tribunal, supporting its application with correspondence, invoices and the disputed settlement terms. Based on the above facts, answer the following questions: Explain the essential contents which Aarohan's notice must include under the Arbitration and Conciliation Act, 1996 and institutional rules.

Answer & Explanation:

Aarohan's notice must include the following essential contents under the Arbitration and Conciliation Act, 1996 and institutional rules: The names and contact information of the parties involved in the dispute. A statement indicating that the dispute will be resolved through arbitration, rather than through litigation in a court of law. A brief summary of the dispute, including the relevant facts and any legal or contractual provisions that are relevant to the dispute. A request for a specific form of relief or remedy, such as monetary damages, injunctive relief, or specific performance. The rules and procedures that will govern the arbitration, including any designated arbitration organization, the location of the arbitration, and the number of arbitrators who will be appointed. A copy of the arbitration agreement, if any, that the parties have previously entered into. A deadline for responding to the notice and for selecting an arbitrator or arbitrators if necessary. A statement indicating that the parties agree to abide by the decision of the arbitrator or arbitration panel and to waive any right to appeal the decision. A statement requesting the other party to nominate an arbitrator, in case of a two-arbitrator panel or to agree on the appointment of a presiding arbitrator in case of a three-arbitrator panel. A statement indicating that if the other party does not respond to the notice within a specified time period, the initiating party may proceed with the appointment of an arbitrator or arbitrators on its own. It is important to note that the specific requirements for a notice to arbitration in India may vary depending on the arbitration agreement, the applicable law, and the rules or procedures that apply to the arbitration.

Topics: Arbitration and Conciliation Act, 1996

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