The Delhi High Court on Tuesday allowed the sale of unencumbered shares of the firms of former promoters of Ranbaxy Laboratories in listed companies to repay the Rs 3,500-crore arbitration award in favour of Japanese pharma major Daiichi Sankyo.
The Delhi High Court on Tuesday allowed the sale of unencumbered shares of the firms of former promoters of Ranbaxy Laboratories in listed companies to repay the Rs 3,500-crore arbitration award in favour of Japanese pharma major Daiichi Sankyo. However, this would not apply to shares held by Malvinder Singh as there is a stay granted by the Delhi Debt Recovery Tribunal on the sale of his unencumbered assets in a separate case by Yes Bank. It is seeking to recover its `565-crore loan given to Oscar Investment for which Malvinder was a guarantor. The court also issued a notice to Yes Bank.
Justice Jayant Nath also directed the debtors to fully cooperate with the chartered accountant, who was appointed a local commissioner in the matter, to sell these shares at the stock exchange.
The court said the proceeds should be deposited with the registrar general of the High Court and listed the matter for further hearing on May 14.
Meanwhile, brothers Malvinder Singh and Shivinder Singh on Tuesday moved a fresh plea in the HC seeking a stay on its proceedings till the Singapore Court of Appeal, pronounced its judgment in an appeal by them against the arbitration award that went in favour of Daiichi. The appellate court has reserved its judgment.
Last month, the HC had directed a court-appointed chartered accountant to give valuation of the Singh brothers’ unpledged shares trading on stock exchanges that were disclosed by them. The judge also gave liberty to accountant to sell their shareholding in Fortis Health on exchanges so that the money can be deposited in the court towards the repayment of Daiichi’s award.
Daiichi has sought execution of the HC’s January 31 order that upheld the enforceability of the `3,500 crore arbitral award passed against Singh brothers and others. Daiichi had also approached the HC to stall a potential sale of Fortis’ hospital business to a consortium of Manipal Health Enterprises and private equity giant TPG.
The HC had in March ordered attachment of all declared assets, except bank accounts, of Singh brothers in the proceedings initiated by the Japanese firm for enforcement of the arbitration award.
In May 2016, Singapore’s arbitration tribunal asked the brothers to pay damages of Rs 2,562.78 crore ($400 million) to Daiichi for concealing and misrepresenting information during their stake sale in 2008 to the Japanese firm. With interests and legal fees the payable amount now comes to around `3,500 crore. Daiichi had then moved the Delhi High Court for enforcement of the award to recover the damages from the brothers. However, the brothers challenged the petition.
The Supreme Court had dismissed the Singh brothers appeal against the order of the HC allowing enforcement of the order.