Singapore court dismisses appeal by Singh Bros against Rs3500 cr arbitral award

Prashasti Awasthi Mumbai | Updated on May 29, 2020

The Singapore court has dismissed appeals made by the former Fortis promoters duo challenging a 2016 arbitral award of Rs 3,500 crore against them and in favor of Japanese drugmaker Daiichi, CNBC reported.

The Singapore Court of Appeals is the highest court in the country. Hence, the duo cannot challenge the order further.

In 2008, Daiichi had purchased 34.82 per cent stake held by Singh brothers, for a consideration of $2.4 billion. However, The United States Food and Drug Administration had launched a series of investigations against Ranbaxy after a whistleblower complaint that the company falsified the data to accelerate drug approvals. Daiichi remained unknown to the development.

In 2011, after the Daiichi took over the shares, the investigations culminated in payment of a settlement sum of $500 million.

In 2012, Daiichi alleged that Singh brothers concealed the data and information about the ongoing USFDA investigation and initiated arbitration proceedings.

In April 2016, the arbitration tribunal in Singapore had awarded damages of Rs 3,500 cr in favor of Daiichi, payable by Singh brothers.

Singh brothers, who have been facing execution proceedings in India for payment to the tune of Rs 3,500 crore arbitral award, had cited pending challenges in Singapore’s higher courts to stall payment.

Representing Daiichi Sankyo, Managing Partner of P&A Law Offices, Anand Pathank said as cited in the CNBC report: “This judgment has brought finality to the appeal proceedings in this case. We can now proceed forward with focused enforcement of the Arbitral Award and to recover for our client, Daiichi Sankyo. This is also the first time the Supreme Court in Singapore has admitted Indian lawyers to argue a matter, and this victory is a great achievement for Daiichi Sankyo, the Indian Bar and for all the lawyers who worked for Daiichi Sankyo in this case.”

Currently, Singh Brothers are incarcerated in Tihar Jail, New Delhi, after a complaint filed by Religare Finvest with the Economic Offences Wing of Delhi Police, for causing wrongful losses of Rs 2,397 crore.

The Supreme Court has also held the Singh brothers guilty of contempt of court for violating SC orders by diluting stake in Fortis Healthcare. The SC had allowed them to get the contempt charges dropped after paying back to Daiichi.

Meanwhile, the due is also facing execution proceedings in the Delhi HC, with the October 2019 order. The order asked them to pay the Rs 3,500 crore, as per the arbitral award, CNBC report added.

Singh Brothers, Ranbaxy, Singapore, USFDA, Daiichi, Fortis, Supreme Court India

Published on May 29, 2020

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