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Last Updated : Jan 31, 2018 08:36 PM IST | Source: CNBC-TV18

Delhi High Court rules in favour of Daiichi, Singh brothers to pay arbitral award of Rs 3,500 crore

In 2016, Daiichi Sankyo - a Japanese drugmaker - had filed the petition to apply for an arbitral award and had won in the Singapore tribunal.

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The Delhi High Court has ruled allowing the Daiichi Sankyo's plea which sought Rs 3,500 crore arbitral award against the Singh brothers who allegedly concealed details on selling Ranbaxy Laboratories products in 2008.

The Singh brothers — Malvinder Singh and Shivinder Singh — are the chiefs of Fortis Healthcare, Religare and former Ranbaxy promoters. In 2013, the firm had pleaded guilty in the US to charges which alleged them to distributing degraded medicines and manipulating and furnishing wrong data. The firm had to pay USD 500 million.

In 2016, Daiichi Sankyo, a Japanese drugmaker, had filed the petition to apply for an arbitral award and had won in the Singapore tribunal.

The Delhi High Court holds that the amount is payable to Daiichi by the Singh Brothers. This means that the award, which was granted in the Japanese drugmaker's favour, has to paid by the Singh brothers. The actual amount for the arbitral award was for Rs 2,500. The remaining Rs 1,000 crore comes after summing up the interest and litigation costs.

Along with this, the apex court had barred the Singh brothers from selling any of their assets in Fortis Healthcare, in accordance to another petition filed by the same drugmaker.

Two remedies are available for the brothers. The brothers had earlier challenged the award in the Singapore Court of Appeal and the case is still pending there. The Delhi High Court order is the first case of litigation. The brothers are expected to challenge the order in the near future.
First Published on Jan 31, 2018 08:36 pm
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