NEW DELHI: Former Ranbaxy and
Fortis Healthcare promoter Shivinder Singh on Friday formally withdrew his petition against his elder brother Malvinder in the
National Company Law Tribunal (NCLT), but made it clear that he is keeping the option open to go back to litigation if the outstanding issues between the siblings, including payment to Daiichi, are not resolved. “In the event mediation fails, I intend to reassess and start a fresh action if that is what it takes to address all issues and start afresh,” Shivinder said in a statement.
He more or less made it clear that the brothers had parted ways. “To allay justifiable scepticism, let me be clear: The decision to disassociate from my brother and tread an independent path stands,” the statement said.
Shivinder had moved the NCLT against his elder brother Malvinder Singh and former CEO of RHC Holding, Sunil Godhwani, alleging that they were involved in activities that were detrimental to the company’s interest. He later decided to withdraw the petition at the behest of his mother and family members, who agreed to mediate to resolve various outstanding issues between them.
On Friday, Shivinder said he was forced to file a case against his brother as he found it difficult to work with him in resolving issues with
Daiichi Sankyo and other creditors. “I did so (filed the case in NCLT) because my primary goal remains to address and resolve the group’s issues through constructive and transparent engagement with Daiichi Sankyo and our other creditors. It is clear that my brother and I cannot do so together,” he said.
Repeated attempts to reach Malvinder Singh through his office did not yield a comment.
Both the brothers are facing a tough task of resolving a dispute with Daiichi Sankyo, which is enforcing an international award to recover Rs 3,500 crore against them. A Singapore tribunal had asked both the brothers to pay the amount for concealing information related to wrongdoings at Ranbaxy, when Daiichi acquired the drug maker from the Singh brothers for $4.6 billion in 2008. Shivinder said the decision to file the case was made with a “very heavy heart and after careful deliberation”. “The decision to withdraw was weighed equally seriously.”
He said the purpose of the whole exercise was to make Malvinder take joint responsibility to resolve the outstanding issues that the group is facing. “To that end, I intend to use the mediation process to get to a critical decision. Namely, whether my brother or I take full responsibility for resolving the group’s issues with Daiichi Sankyo and other lenders.”
Meanwhile, a counsel for
Religare Enterprises, which was also a respondent in the case filed by Shivinder, said the junior Singh alleged siphoning of funds by Malvinder and Godhwani. He raised the issue of recovery of money from them. However, NCLT ruled that for this, a separate case should be filed. “If you wish to initiate any proceedings, move a separate application,” the judge said.
