New Delhi: The former Ranbaxy promoters have objected to the enforcement of Singapore arbitration award in India. In a proceeding on Monday it was said by their supporting lawyer that the enforcement of arbitration award on the two does not have any grounds in India.
As reported by the Medical Dialogues team earlier, An arbitration court in Singapore had directed former promoters of Ranbaxy laboratories Ltd, Malvinder Mohan Singh and Shivinder Mohan Singh to pay damages worth Rs.2,562.78 crore to Japan’s Daiichi Sankyo Co. Ltd. The directive had come in the face of having concealed facts when they sold their 34.82% stake in Ranbaxy, to the latter for $2.4 billion in 2008. The deal when it took place was valued at $ 4.6 billion.
The concealment of facts came to light during a US Food and Drug Administration (FDA) investigation of Ranbaxy processes. In 2013, when Daiichi filed an arbitration case in Singapore against the Indian promoters, for misrepresentation and concealments of facts, the Singapore International Arbitration Centre (SIAC), provider of neutral arbitration services to the international business community, issued a decree against the Singh brothers. The Daiichi Sankyo Co Ltd, had filed this case seeking compensation for the losses that it had been forced to pay the US Department of Justice.
In Monday’s hearing, senior advocate Harish Salve, appearing on behalf of the Singh brothers submitted that “substantive questions” exist, which make the award incapable of enforcement under Indian arbitration laws.
Daiichi had approached the Delhi High Court early this year in order to seek enforcement of the arbitral award on the ex-promoters of Ranbaxy. It was also demanded that an additional sum of Rs. 1,000 crore in interest payments and the fees incurred in association with the proceedings should also be penalized on the two.
According to Business Standard, Salve challenged the litigation of Singapore Tribunal’s award of consequential damages payment, while also accusing Daiichi of withholding documents in the international proceeding that showed their knowledge of inquiries against Ranbaxy before the date of the acquisition.
Delhi High court have now asked for details of assets owned by the other respondents and further listed the matter for another hearing on 28th of November 2016.