Former Ranbaxy promoter Shivinder Singh on Thursday told the Delhi High Court that he was willing to negotiate and mediate with Japanese pharma major Daiichi Sankyo for paying his part of the dues towards the settlement of a Rs 3,500-crore international arbitration award that went against him and his brother Malvinder Singh.
Observing that Shivinder’s intentions might be noble, but he needs to back his offer by substance, justice Rajiv Shakhdar asked him to come up with a viable plan for settlement by October 30, the next date of hearing. Shivinder argued that he was ready to sit across the table with Daiichi and mediate to find a solution with regard to payment of his share of dues.
“Sentiments must be backed by substance,” the judge said.
The court has also asked the Singh brothers to submit a report within a week detailing how the valuation of the assets they had earlier disclosed to the court has gone down.
Shivinder told the court that the valuation had depleted because of Daiichi and his approach to resolving the ongoing conflict has a “fundamental difference” from his brother Malvinder’s approach.
Shivinder’s counsel said that he had renounced the business three years ago when it was valued at thousand of crores. He indulged in Sewa and no money is stashed anywhere, according to the lawyer.
The HC accepted Daiichi’s request for the further release of `17.65 crore from the sale of the Singh brothers’ shares in Singapore-listed Religare Health Trust towards part payment of the award. It had also last month directed the release of `9.38 crore received by them from the sale of their shares in listed companies towards part payment of the award against the brothers.
Daiichi argued that this money was raised out here and not brought from Singapore. Even after bringing money to India, they’ll still be bound by court’s jurisdiction, the pharma major said.
Meanwhile, Malvinder filed a fresh application seeking a nod to withdraw pension from his bank accounts, saying pension is outside the purview of attachment and pension was being received even after Daiichi assumed control of Ranbaxy.
The HC had in February asked the promoters and 12 others, including their family members and companies against whom the arbitral award was held to be enforceable by the HC on January 31, not to sell or transfer their shares or any movable or immovable property which were disclosed during the course of hearing of the case.
In May 2016, Singapore’s arbitration tribunal asked the brothers to pay damages of `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 HC for enforcement of the award to recover the damages from the brothers. However, the brothers challenged the petition.
Daiichi, which finally exited Ranbaxy in April 2014 by selling its stake to home-grown multinational Sun Pharmaceutical Industries, had filed the arbitration case in 2013 in Singapore. It had accused the Singh brothers of concealment and misrepresentation of facts and sought compensation for losses. Ranbaxy under the management of Daiichi had in 2013 paid $500 million to the US department of justice pleading guilty to the charges of felony.