Former Fortis promoter Shivinder Mohan Singh moved the NCLT for personal bankruptcy, CNBC-TV18 reported on Monday. The former Religare promoter has claimed that his liabilities exceed available assets, the CNBC-TV18 report added. Shivinder Singh has invoked Section 94 of the Insolvency and Bankruptcy Code (IBC). Section 94 of the IBC allows individuals to file for insolvency if they are unable to repay debts.
In his insolvency plea, Singh claimed that most of his “assets have been attached or sold due to litigation in Daiichi. Singh has blamed Rs 3,500 crore arbitral dispute with Daiichi as well as mismanagement at Religare for the insolvency.
Singh, once ranked among India’s wealthiest businessmen, joined his brother Malvinder Singh in co-founding Fortis and Religare after they sold their majority stake in Ranbaxy Laboratories to Japan’s Daiichi Sankyo in 2008 for nearly $4.6 billion. The deal, however, eventually led to one of the most notorious corporate battles in Indian business history.
After the award was granted, enforcement proceedings commenced in Indian courts. The Delhi High Court ordered the Singh brothers to settle the arbitral dues, leading to the attachment and recovery actions against several of their personal and corporate assets, including stakes in RHC Holding Pvt. Ltd.
The insolvency petition aims to initiate a legal and orderly process for resolving his debts, in line with the provisions of Indian bankruptcy law.
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