Delhi High Court ordered the Singh brothers to pay ₹9 cr of the ₹3,500 cr arbitration award to Daiichi Sankyo. Malvinder Singh and Shivinder Singh will pay the first installment to the pharmaceutical company in the Ranbaxy case. A lawyer present at the court room proceedings on Wednesday told The Economic Times.
Most likely, this could be through the sale of company shares of the brothers and their family members. However if the brothers win an appeal against the award then Daiichi must commit to return the amount.
The Singhs (previous promoters) sold Ranbaxy Laboratories to Daiichi Sankyo in 2008 for ₹9,576 crores. However, they concealed the probe that Ranbaxy was facing with the Food and Drug Administration in the US from Daiichi Sankyo. The Delhi High Court passed an international arbitral award of ₹3,500 cr in favor of Japanese pharma major Daiichi Sankyo in January this year.
Stake in Fortis
Daiichi Sankyo has submitted a request to stop the sale of Fortis to IHH. As this could delay the arbitration process. The Court’s decision on this is however pending. The hearing will be on November 1.
Hearing on sale of RHT shares- October 11
Malvinder Singh sold 45 lakh shares worth ₹18.2 cr of the Religare Helath Trust (RHT). According to lawyers, the court ordered him to deposit the money within 4 weeks for disobeying it. The Court will next hear this matter in October with all relevant details including the broker, authorization.
Malvinder Singh will submit an affidavit with the details.
Shivinder Singh’s ‘outburst’
On Tuesday, Shivinder Singh filed a case in the National Court of Law Tribunal (NCLT) against Malvinder Singh and Sunil Godhwani, former chairman and managing director of Religare for ‘oppression and mismanagement of RHC Holding, Religare and Fortis.’
Once matters are referred to NCLT for IBC proceedings promoters lose control over the company’s assets.