The Delhi High Court ruled that the Rs 3,500-crore arbitration award that Daiichi Sankyo won against billionaire Singh brothers for concealing information about erstwhile Ranbaxy Laboratories Ltd is enforceable in India.
Daiichi Sankyo had filed the petition to enforce the arbitral award it had won in 2016 in the Singapore tribunal. The Japanese drugmaker had argued that Malvinder Singh and Shivinder Singh concealed important information while selling Ranbaxy in 2008.
The generic company in 2013 pleaded guilty in the US to charges of distributing adulterated medicines and falsifying data. It had to pay $500 million. Sun Pharmaceuticals Ltd later acquired the company from Daiichi.
The Singh brothers had argued in the Delhi High Court that the arbitral award was not enforceable under Indian law. They have separately challenged the award in the Court of Appeal of Singapore.
Separately, the Supreme Court had also barred the Singh brothers from selling any of their encumbered or unencumbered assets in Fortis Healthcare in another petition filed by Daiichi.
Shares of Fortis Healthcare dropped 7.3 percent immediately after the judgement.
(This article was originally published in BloombergQuint)
(At The Quint, we question everything. Play an active role in shaping our journalism by becoming a member today.)