Daiichi appeals in NCLT against insolvency of RHC Holding

NEW DELHI: To make sure it is not denied its rightful share of the pie, Japanese pharmaceutical firm Daiichi Sankyo has moved the National Company Law Tribunal (NCLT) to stay the insolvency proceedings against RHC Holding, initiated by HDFC Bank.

Daiichi, which has filed an intervention application against the insolvency plea filed by HDFC, said it has a decree to recover money against RHC Holding. The Delhi High Court has already granted status quo over sale of assets by RHC Holding.

A two-member NCLT bench has asked RHC Holding and HDFC Bank to file a reply over the move within a week. It has directed the matter to be listed for hearing on October 4.

A Singapore tribunal had in 2016 passed a Rs 3,500 crore award in favour of Daiichi Sankyo, holding that erstwhile promoters of RHC Holding Malvinder Singh and Shivinder Singh had, while selling its shares, concealed that the Indian firm was facing probes by the US Food and Drug Administration and Department of Justice.

The two brothers, who are also facing several other probes and at present have fell out with each other, had sold their shares in Ranbaxy Laboratories to Daiichi for Rs 9,576.1 crore in 2008.

Sun Pharmaceuticals Ltd had later acquired Ranbaxy Laboratories from Daiichi.

What it’s worth

Founded by the Singh brothers, RHC Holding has four companies under its fold. In an affidavit filed before the High Court earlier, the Singh brothers had declared the total encumbered and unencumbered value of RHC Holding at I3,579.26 crore.