The Delhi high court on Monday ordered the sale of unencumbered listed shares owned by former Ranbaxy promoter Malvinder Singh and others, in connection with the recovery of a Rs3,500 crore arbitration award in favour of Japanese drugmaker Daiichi Sankyo Co. Ltd.
Earlier this month, the court had ordered the sale of similar shares owned by Shivinder Singh, another former Ranbaxy promoter.
Proceeds from the sale would be deposited with the registrar general of the Delhi high court towards realization of the arbitral award.
However, in the light of a Delhi Debt Recovery Tribunal order staying the sale of assets held by Malvinder Singh in a separate dispute, Yes Bank and Axis Bank would be heard by the court at the time of disbursal of the amount.
Justice Jayant Nath also directed Oscar Investments Ltd and RHC Holding Pvt. Ltd, companies owned by the Singh brothers, to submit an affidavit disclosing the number of shares held by them in Fortis Healthcare Ltd through another company called Fortis Healthcare Holding, as on 28 February 2017 and 14 May 2018, as well as the proportion to which they are encumbered or unencumbered.
The Singh brothers and others were also asked to reply to a plea moved by Participation Finance and Holdings India Pvt. Ltd and Strategic Credit Capital Pvt. Ltd against the sale of Fortis Healthcare to a third party on the grounds that it would diminish the Fortis brand.
However, no order was passed by the court staying any transaction pertaining to the sale of Fortis Healthcare to a third party.
The court also issued notice to certain entities that owed money to the Singh brothers and other respondents, disclosed in a March 2017 affidavit, seeking their objection to any such claim.
On 31 January, the high court had upheld the enforceability of the award passed by a Singapore tribunal, which had found the Singh brothers and others guilty of making false claims in a self-assessment report, and of misrepresenting and concealing the “genesis, nature and severity of the US regulatory investigations” into Ranbaxy when Daiichi bought their 34.82% stake for $2.4 billion in 2008. The deal value was $4.6 billion.
Pursuant to the execution proceedings moved by Daiichi, the high court had attached all moveable properties disclosed in an affidavit by the Singh brothers and others, on 23 March.
Earlier, on 26 February, all assets disclosed by Oscar Investments Ltd and RHC Holding Pvt. Ltd were also attached by an order of the high court.
The matter would be next heard on 30 May.
Source: Mint