( 1 ) BY this order, petitioners application under Section 9 of the Arbitration and Conciliation Act 1996 (for short "the Act") and two applications IA No. 8138/97 and 8138-A/97 of the respondents are being disposed of.

( 2 ) BRIEFLY, the facts are that Kitechnology B. V. of Netherlands (KBV), Kitechnology International Corp. of Liberia (KIC), Kitechnology Holdings N. V. of Netherlands (KNV), Kitechnology (UK) Limited of London (KUK), SP Verbundrohr Gmbh (SPVG) and their subsidiaries and associates (hereinafter called the "kitec Group") had developed and owned patent rights in a system relating to the production of the product, namely, Multi-layered Composite Pipes (MLCP), Fittings for use with MLCP and related equipments for the manufacture of MLCP (called the "kitec process" ). Kitec group had granted licences to third parties to use the Kitec process for the manufacture and distribute/sale of MLCP in various territories the world over.

( 3 ) ANOTHER group of companies, namely, Unicor Rohrsysteme Gmbh of Germany (URS), Unicor Gmbh Rahn Plastmaschinen of Germany (Plastmaschinen) and their associates etc. (for short "the UNICOR Group") of Germany had also developed similar products and its Equipments etc. (called the "unicor process" ). Both the parties are foreign groups.

( 4 ) DISPUTES had arisen between Kitec Group and Unicor Group and litigations were pending in some courts in U. K. and Germany. The two groups agreed to settle their disputes and for that; purpose entered into settlement/agreement dated 11. 11. 1994 at Germany (hereinafter called the "hamburg Agreement") and it was, inter alia, agreed that Kitec Group will transfer/assign their aforesaid Kitec patent rights to Unicor Group, close down its production, manufacture and distribution of MLCP and withdraw from direct involvement in the development, manufacture and distribution of the Equipments and MLCP, the licensing of the Kitec patents and the Kitec-Knowhow, on the agreed terms and conditions for consideration and on royalty basis and on Unicor Group agreeing to fulfil all obligations arising from the existing Kitec License after this agreement and subject to exceptions provided in Clause 9 of the Agreement which provided as under :-

9. EXCLUSIVE LICENSE FOR THE KITEC GROUP FOR INDIA, SOUTH AFRICA AND GUANGDONG With respect to India. . . . . . . . . . . . the following specific provisions shall apply: 9. 1 he Kitec Group shall have the exclusive right (which also excludes the Unicor Group and its affiliates) to manufacture and distribute and/or have manufactured or distributed MLCP, provided that the Kitec Group and its licensees observe the restrictions set out below. . . . . . . 399 9. 2 If by 31st December 1996 neither the Kitec Group nor a licensee of the Kitec Group shall have begun commercial production of MLCP in any such territory, or if such commercial production shall be permanently discontinued at a later stage, then with respect to the territory in question, the Kitec Group shall no longer be entitled to manufacture and distribute and/or have manufactured and distributed MLCP. 9. 3 If prior to 31st December 1996, a licensee of the Kitec Group shall commence commercial production of MLCP in any of the above-mentioned territories, then the following shall apply to the territory in question. 9. 3. 1. As from the date of signature (but in the case of India: as from the date of delivery of Equipment) of the said License Agreement between the Kitec Group and the Kitec Licensee, the license shall be deemed to constitute an Existing Kitec License. The Kitec Group shall immediately inform the Unicor Group about the conclusion of such license agreements and/or the commencement of commercial production. 9. 3. 2. . . . . . . . . . . 9. 4. . . . . . . . . . . 9. 5. . . . . . . . . . . 9. 6. . . . . . . . . . .

( 5 ) THIS agreement also contained an arbitration clause providing for the mode and machinery for appointment of arbitrators for resolving