Rs 3,500 crore jolt to Singh brothers as Delhi High Court upholds the arbitral award
New Delhi: After a long legal battle, Daiichi Sankyo has finally achieved a victory against Singh brothers as the Delhi High Court has allowed the firm to collect over $500 million from former Ranbaxy promoters Malvinder and Shivinder Singh as part of the international arbitration award.
Justice Jayant Nath however, while delivering the verdict in court dismissed the objections to the enforcement of the award by 15 of the respondents in the case saying that the award cannot be enforced against the Singhs' children reports ET.
According to lawyers from both sides, this means that Daiichi is allowed to enforce the award granted by a Singapore arbitration tribunal in April 2016.
In 2013, Daiichi Sankyo had filed a petition against Singh brothers in Singapore tribunal to enforce the arbitral award. Daiichi claimed that Malvinder Singh and Shivinder Singh cloaked important information while selling Ranbaxy to the company in 2008. The generic company in 2013 pleaded guilty in the U.S. to charges of distributing adulterated medicines and falsifying data.
The firm eventually had to reach a $500-million settlement with the US Department of Justice over these allegations.
In 2016, the Singapore arbitration tribunal had directed Singh brothers to pay Rs 2,562 crore in damages giving the verdict in favour of Daiichi which has now valued at Rs 3,500 crore after including interest and legal fees.
Read also: Ex-Ranbaxy owners to pay Rs 2,600 Crores to Daiichi for concealing facts
Daiichi had approached the Delhi high court to collect the dues in May 2016, but the Singh brothers had argued in the Delhi High Court that the arbitral award was not enforceable under the Indian law and separately challenged the award in the Court of Appeal of Singapore.
Read also: Singapore arbitration award of Rs 2,562 crore holds no grounds in India: Ex Ranbaxy Owners