Daiichi-Ranbaxy arbitration award case: Delhi High Court allows partial sale of assets

Team SoOLEGAL 9 May 2018 7:12pm

Daiichi-Ranbaxy arbitration award case: Delhi High Court allows partial sale of assets

New Delhi: Justice Jayant Nath of the Delhi High Court on a plea moved by Daiichi allowed the sale of unpledged shares of the firms of former promoters of Ranbaxy Laboratories in listed companies to pay an arbitration award of Rs 3500 crore given by a Singaporean Tribunal to Daiichi against Ranbaxy promoters .The amount raised will be deposited with the registrar general of the High Court and then used to pay Japanese pharma major Daiichi Sankyo.

The court ruled that the order shall not be applicable on the shares held by Malvinder Singh as there is already a stay imposed by the Delhi Debt Recovery Tribunal on his unpledged assets in a separate case by Yes Bank. The said recovery was ordered as Yes Bank failed to recover loan of Rs 565 crore  extended  to Oscar Investment in which Malvinder was a guarantor. The court also issued a notice to Yes Bank. The court has posted the matter for further hearing on May 14.

The promoters were told to cooperate in the sale of shares with the chartered accountant who was named as local commissioner in the matter. 

Post the order Singh brothers' filed a fresh plea in the HC seeking a stay on its proceedings as they have filed an appeal in Singapore court against the arbitration and court should hold back its order till the decision on their appeal is made. 

Daiichi had bought Ranbaxy in 2008 but it later discovered that former promoters of Ranbaxy had misrepresented facts material to financial health of the company which caused considerable loss to Daiichi.To seek damages, the company filed an Arbitration case in Singapore where in May 2016 the company won an award of Rs 2562.78 crore which has since grown to Rs 3500 crore because of interest and litigation cost.The company has explored all legal means to get the award enforced.  

Tagged: Daiichi Sankyo   Ranbaxy   Delhi High Court   Singapore Arbitration Tribunal  
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