Delhi HC takes steps for payment of arbitration award to Daiichi by Singh brothers

Team SoOLEGAL 26 Apr 2018 4:58pm

Delhi HC takes steps for payment of arbitration award to Daiichi by Singh brothers

New Delhi: Justice Jayant Nath of Delhi High Court asked Chatered Accountant or court commissioner to prepare a list of free assets of brothers Malvinder Singh and Shivinder Singh, promoters of Fortis Healthcare,  for  payment of award of Rs 3500 crore towards arbitration of 4.6-billion sale of Ranbaxy Laboratories to Daiichi in 2008.

The company has an option of appealing in a two-member panel of the Delhi HC or the Supreme Court.The Singh brothers said it was a bid by Daiichi to hurt them personally and stall the sale of Fortis.The Daiichi counsel said Fortis is one major asset and if its sale goes through , there can be question mark over the payment of the arbitration award they won from Singapore court and on which Indian courts have also put their approval.

The Japanese firm had moved the Delhi HC to enforce the arbitration award announced by a Singapore tribunal, which had found that the brothers had concealed critical information at the time of selling Ranbaxy to Daiichi. The brothers had contested that ruling in the Singapore court and also opposed implementation of the award in India.

The court ruled that Daiichi can claim the amount from the brothers and their companies but not from their children, who were also named in the suit filed by Daiichi.

Daiichi had filed a case in 2012 with an International Court of Arbitration in Singapore, accusing the Singh brother's of concealing and misrepresenting critical information about the US FDA probes into Ranbaxy. The Tribunal ruled in its favour and in verdict given in 2016,it asked Singh brothers to pay Daiichi both damages and interest. Incidentally Daiichi sold Ranbaxy to Sun Pharmaceutical Industries for $3.2 billion in 2014.

Tagged: Delhi High Court   Daiichi Sankyo   Ranbaxy   Fortis   Arbitration  
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