Daiichi Objects Sale of Religare to Religare Health Insurance, moves to Court

NEW DELHI: Japanese firm Daiichi Sankyo has again knocked the Delhi High Court's door over the sale of Religare Enterprises to Religare Health Insurance.

The Japanese firm objected that the former Ranbaxy owners's Malvinder Singh and Shivinder Singh are liable to follow the Court's instructions as earlier the apex Court had directed the Singh brother to do not sale any of their stakes without the permission of Court.

Read Also: Religare to sell Religare Health Insurance to PE fund Rs 1,040 cr

Medical Dialogues team had earlier reported that Japanese Company Daiichi Sankyo filed an application in the Court in order to block the former Ranbaxy owners Malvinder and Shivinder Singh’s to sell any of their stakes in Fortis Healthcare and allied subsidiaries. Reacting over the Daiichi's application the court directed the two brother to seek the permission of the Delhi High Court before to sale of their assets.

Read also: Do Not Sell any assets without Permission: Delhi HC to Singh Brothers

Meanwhile, the Singh brothers said that court orders are not applicable to Religare as it is not party to the Japanese drug maker’s case to recover Rs 3,500 crore from them as part of an arbitration award.

Supporting Daiichi's appeal, Daiichi counsel CA Sundaram alleged the brothers disobeyed the Court's order by moving ahead with Religare Enterprises’ stake sale.

Speaking with BS, a spokesperson of RHC Holding Private Limited said, “We have complied with all the orders of the Hon’ble Court. The order is applicable only in respect to the unencumbered assets to parties to the litigation, namely RHC Holding and Oscar Investments. The operating listed entities of the group, including Religare, are not party to the litigation."

“There is no order on any of the operating companies of the group, including Religare, which continues to run their businesses in normal course as separate listed entities. Daiichi Sankyo is moving applications only to delay hearing of the main matter and to prejudice the facts,” the spokesperson told ET.

Medical Dialogues team had earlier reported that Daiichi Sankyo in its last hearing requested the court to include a third party auditor to inspect the financial details disclosed by former owners of Ranbaxy.

Daiichi stated in its application that the third party auditor will also inspect the other 17 respondents and their shareholding in such unencumbered asset’s case along with the details disclosed in sealed covers by Malvinder and Shivinder Singh.

Read also: Daiichi versus Singh Brothers: Daiichi Sankyo demands third party Audit