Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now


You can switch off notifications anytime using browser settings.
11,921.50-96.9
Stock Analysis, IPO, Mutual Funds, Bonds & More

Supreme Court to pronounce verdict on Singh brothers

A bench of Chief Justice Deepak Gupta and Sanjiv Khanna will pronounce the judgment on Friday. The ruling is expected to impact the Fortis-IHH deal, on which the apex court had imposed a status quo in December last year.

, ET Bureau|
Nov 15, 2019, 07.43 AM IST
0Comments
BCCL
7
CJI Ranjan Gogoi in Feb hearing had told the Singh brothers it was embarrassing for persons of their stature to renege on payments and asked them for a concrete proposal to secure the money.
The Supreme Court will pronounce today its verdict on Japanese drug maker Daiichi Sankyo’s petition against the Singh brothers on non payment of Rs 3500 arbitration award.

A bench of Chief Justice Deepak Gupta and Sanjiv Khanna will pronounce the judgment on Friday. The ruling is expected to impact the Fortis-IHH deal, on which the apex court had imposed a status quo in December last year.

Pertinently, in December Daiichi had moved the court to ensure that the sale deal between Fortis and Malaysian healthcare group IHH Bhd is stalled, owing to the large undertakings taken by the former Fortis promoters, Singhs on the basis of their shareholding in the hospital group. The court had then on 14 December, ordered stay on the acquisition of controlling stake in Fortis by the Malaysian healthcare group, stating that “status quo" was to be maintained.

The case relates to the implementation of the arbitration award that Singh brothers were ordered to pay to the Japanese drug maker Daiichi Sankyo in 2016. In March this year, Daiichi Sankyo Inc had filed a contempt plea against the brothers accusing them of disposing of their assets in violation of the court order.

In its plea submitted to the court then, Daiichi Sankyo argued that the Singh brothers created encumbrances on 1.2 million shares of Fortis in violation of court orders.

In its hearing in February, the Supreme Court bench of Chief Justice Ranjan Gogoi, Justice Navin Sinha and Justice Sanjiv Khanna had ordered a personal presence of Singh brothers along with their affidavits in the court.

Gogoi had told the Singh brothers it was embarrassing for persons of their stature to renege on payments and asked them for a concrete proposal to secure the money.

While older sibling Malvinder Singh, represented by senior advocate Kapil Sibal, said about Rs 6,300 crore in assets couldn’t be recovered. This included the Religare and Fortis brands which though encumbered could generate value, according to him. He said other unencumbered assets and businesses could be sold to recover some money but was unable to give the court an exact valuation of these. Shivinder told the court that asset values had gone down substantially over the years but he could boost them in a few years if given a chance. He had earlier claimed that he was not at the helm of affairs for some time as he had taken sanyaas from the world.

A Singapore arbitration tribunal had asked the Singh brothers to pay Rs 2,562 crore to Daiichi Sankyo in 2016 to settle a dispute that arose after the Japanese company’s acquisition of Ranbaxy more than a decade ago. Daiichi had blamed the Singh brothers for allegedly suppressing facts during the sale of Ranbaxy, helmed by Malvinder Singh, after the drug maker’s manufacturing plants faced severe regulatory issues with the US Food and Drug Administration. Although the former Ranbaxy promoters challenged the tribunal’s decision before courts in India and Singapore, the Delhi HC upheld the award in January 2018.

Also Read

No stay on Sabarimala order: Supreme Court

Supreme Court order tomorrow on Maharashtra floor test

Rightly invited, BJP to tell Supreme Court today

Supreme Court clears Arcelor's takeover of Essar Steel

Comments
Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.

Other useful Links


Follow us on


Download et app


Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service