Delhi HC takes note of Daiichi's 2nd attempt at blocking Fortis stake sale

Court issues notice on application; seeks reply from Singh Brothers

Sayan Ghosal & Veena Mani  |  New Delhi 

Shivinder Singh and Malvinder Singh
Shivinder Singh and Malvinder Singh

Japanese pharma major approached the once again on Tuesday, in another attempt to block former promoters Malvinder and from selling their stake in Fortis Hospitals. 

The court issued notice on the application and asked the to file a reply before the next date of hearing. In its application, Daiichi has claimed that the have failed to file details of their unencumbered assets in the correct format, as directed by the court in its previous order on January 23. On that day, the high court had asked the brothers to file affidavits disclosing their unencumbered assets and shareholdings before February 8. 

Daiichi had approached the last year, seeking the enforcement of a Rs 2,562 crore Singapore arbitration award against the Singh brothers, as well an additional sum of Rs 1,000 crore in interest payments and lawyers fees, incurred in association with the proceedings.

The April 2016 arbitral award came on the backdrop of actions initiated by Daiichi against the former promoters in relation to their 2008 purchase of a majority stake in the pharmaceutical enterprise. The Japanese company has alleged that the stake sale was made through the concealment and misrepresentation of critical information regarding US Federal Drug Administration and Department of Justice proceedings, which cost Daiichi $500 million in settlement fees in the year 2013. 

On Tuesday, Justice Muralidhar issued notice on the fresh plea against the and directed them to file the corrected affidavits along with a reply before the next date of hearing, March 6. In its January 23 order, the bench had allowed Daiichi to access the asset declarations made by the for use in judicial proceedings, subject to an affidavit of confidentiality being filed by the Japanese company.

Delhi HC takes note of Daiichi's 2nd attempt at blocking Fortis stake sale

Court issues notice on application; seeks reply from Singh Brothers

Court issues notice on application; seeks reply from Singh Brothers
Japanese pharma major approached the once again on Tuesday, in another attempt to block former promoters Malvinder and from selling their stake in Fortis Hospitals. 

The court issued notice on the application and asked the to file a reply before the next date of hearing. In its application, Daiichi has claimed that the have failed to file details of their unencumbered assets in the correct format, as directed by the court in its previous order on January 23. On that day, the high court had asked the brothers to file affidavits disclosing their unencumbered assets and shareholdings before February 8. 

Daiichi had approached the last year, seeking the enforcement of a Rs 2,562 crore Singapore arbitration award against the Singh brothers, as well an additional sum of Rs 1,000 crore in interest payments and lawyers fees, incurred in association with the proceedings.

The April 2016 arbitral award came on the backdrop of actions initiated by Daiichi against the former promoters in relation to their 2008 purchase of a majority stake in the pharmaceutical enterprise. The Japanese company has alleged that the stake sale was made through the concealment and misrepresentation of critical information regarding US Federal Drug Administration and Department of Justice proceedings, which cost Daiichi $500 million in settlement fees in the year 2013. 

On Tuesday, Justice Muralidhar issued notice on the fresh plea against the and directed them to file the corrected affidavits along with a reply before the next date of hearing, March 6. In its January 23 order, the bench had allowed Daiichi to access the asset declarations made by the for use in judicial proceedings, subject to an affidavit of confidentiality being filed by the Japanese company.
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