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Daiichi again moves to Court to Block Fortis Stake Sale

Daiichi again moves to Court to Block Fortis Stake Sale

NEW DELHI: Daiichi Sankyo recently moved Delhi High Court yet again 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.

Daiichi has also alleged that the Singh brothers have not obeyed the court’s order as it had directed them to submit the details of their assets value  that can be considered during the award’s enforcement trial. The pharma company alleged that affidavit filed by the brothers is “not in terms” and “inconsistent with the court order and that they have failed to provide assurance that the assets, to the extent of the award amount, will remain unencumbered and won’t be alienated until the award is enforced  The Singh brothers on the other hand have denied the fact by saying that they have followed the court order, reports ET.

ET adds that the court Justice S Muralidhar has directed the brothers to file a reply to Daiichi’s allegations before the next hearing of the case on March 6, when Daiichi’s latest plea is to be heard.

Medical Dialogues had earlier reported that in year 2013, Daiichi filed an arbitration case  in Singapore against the Indian promoters, for misrepresentation and concealment 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.In that matter, an arbitration court in Singapore 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 brother on the other hand approached the Delhi High court, stating that the singapore court had no jurisdiction on the Indian land/

Read also: Ex-Ranbaxy owners to pay Rs 2,600 Crores to Daiichi for concealing facts

With the news floating around that the brother are now looking to sell their 26% stake in Fortis and allied companies, Daiichi objected to the sale, fearing that the move will lead to dilution in the assets which it seeks to recover as part of enforcement of the arbitration award. The company again approached the court in the said matter.

Read also: TPG offers Rs 3000 crore for Fortis stake, Daiichi moves court

However in January appeal, the High Court did not block the Singh brothers from selling stakes in Fortis Healthcare and Religare Finvest along with the order asking them to submit an affidavit declaring their assets value in  Ranbaxy Laboratories within two weeks.The court also allowed Daiichi to access previous asset value declarations made by the Singh brothers.

At the same time, Justice S Muralidhar asked 17 other respondents to submit their details of their shareholding in such unencumbered asset’s case  that  could instead be considered during the award’s enforcement trial.

Read also: Disclose the assets value within 14 days: HC to Singh brothers

In the recent application filed by Daiichi Sankyo, the company has alleged that the Singh brothers have neither particularized their unencumbered assets nor provided any assurance that the assets, to the extent of the award amount, would not be encumbered or alienated until the award is enforced.

“It is submitted that, in absence of specific information about the nature, quality and value of the unencumbered assets held by the respondents, the respondents be restrained from alienating or disposing of any assets,” Daiichi Sankyo said in its application.

Adding further in their application, Daiichi has also asked the court that whether the respondents have adequate assets to pay the award when it’s enforced.

Speaking with ET, an spokesperson of RHC Holding said, “All directions of the honourable court stand complied. There was no response to an email sent to Daiichi’s lawyers.”

Read also: Singapore SC Disallowes Harish Salve to represent Ranbaxy Owners in Daiichi Case


Source: With inputs
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