On advice of their mother, the Singh brothers will engage in mediation to resolve their issues
Former Fortis Healthcare promoter Shivinder Mohan Singh, who had earlier this month moved the National Company Law Tribunal (NCLT) against his elder brother Malvinder Mohan Singh and ex-Religare chief Sunil Godhwani alleging blatant acts of mismanagement in RHC Holdings, on Thursday filed for permission to withdraw his original petition. The matter will be heard on Friday. In his original petition, Shivinder had alleged that collective and ongoing actions of his elder brother and Godhwani led to a systemic undermining of the interests of companies and their shareholders.
“I have applied to withdraw the petition before NCLT that is coming up for hearing,” Shivinder told PTI. “A mediation process has been kicked off and if it does not work, I have the option of refiling it,” he added. Shivinder’s application withdrawing his original petition from NCLT states that pursuant to the filing of the original petition, his mother requested that both the brothers engage in mediation led by family elders respected by both with a view to settling inter se issue between them.
“That out of respect for their mother, the parties have already started mediation and as per the request of the mediators to constructively progress the mediation, the petitioners wish to withdraw the petition, without prejudice to their rights and contentions. All rights of the petitioners are hereby reserved,” Shivinder said in his prayer, withdrawing the original petition. Sources said the fallout between the brothers had happened much earlier and Shivinder had quit his executive responsibilities and moved to Beas in 2015. However, the arbitration award of Rs 3,500 crore against them in the Daiichi Sankyo matter and the Fortis controversy made him return.
Sources said, with legal experts stating that Shivinder cannot escape the fallout of either the Daiichi Sankyo award or the Fortis matter because it pre-dated his moving against his elder brother Malvinder made people close to him suggest mediation rather than confrontation.
On September 5, the Delhi High Court had cracked the whip on the brothers for disobeying its order passed in February and asked Malvinder to deposit the sale proceeds of around 3.5 million Singapore dollars of his shareholding in Singapore-listed Religare Health Trust within four weeks. The court also barred the brothers from moving any assets abroad and directed freezing of their shares in Best Healthcare that owns the Fortis trademark.
It also directed the release of Rs 9.38 crore received by them from the sale of their shares in listed companies towards part payment of Japanese pharma major Daiichi Sankyo’s Rs 3,500-crore arbitral award against the brothers.Shivinder had moved NCLT against his brother on September 4 requesting that he be removed from the board of RHC Holdings because of blatant acts of mismanagement by him and that the board be reconstituted.
The NCLT had on September 6 issued notices to Malvinder, Godhwani and others, and directed them to maintain status quo over the shareholdings and composition of RHC Holdings board till it decides on Shivinder’s plea. Shivinder had alleged illegal and unlawful manipulation of records of RHC Holdings, including forging of signature of his wife Aditi Singh. He had requested the tribunal to allow him or his authorised representatives to inspect the statutory records of RHC Holdings and taking copies thereof and restraining his elder brother from transferring, selling, alienating or creating any third party rights or interests over the assets of RHC Holdings.