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Daiichi wins Rs 3,500-crore arbitration case, deeper trouble for Singh brothers

Wednesday, January 31, 2018, 9:08
This news item was posted in Business category and has 0 Comments so far.

In a big victory for Daiichi Sankyo, the Delhi High Court has allowed the Japanese firm to collect over $500 million from former Ranbaxy promoters Malvinder and Shivinder Singh as part of an international arbitration award.While the award cannot be enforced against the Singhs’ children, objections to the enforcement of the award by 15 of the respondents in the case we’re dismissed at court by Justice Jayant Nath while delivering his verdict on Wednesday afternoon. According to lawyers from both sides, this means that Daiichi is allowed to enforce the award granted by a Singapore arbitration tribunal in April 2016.A copy of the court’s judgment is expected to be made available by tonight. ET will update this story.Daiichi had taken the Singhs to the Singapore tribunal in 2013 after pleading guilty to felony charges related to Ranbaxy making and distributing adulterated medicines in the US and falsifying data. The firm eventually had to reach a $500-million settlement with the US Department of Justice over these allegations.Daiichi alleged the Singhs concealed information regarding wrongdoing at Ranbaxy, once India’s largest drug maker, when selling the firm to the Japanese company for $4.6 billion in 2008.The Singapore arbitration tribunal had ruled in Daiichi’s favour, directing the Singhs to pay Rs 2,562 crore in damages. Including interest and legal fees, the award is valued at Rs 3,500 crore now.Daiichi had approached the Delhi high court to collect the dues in May 2016, but the Singhs had challenged the petition arguing that “substantive objections” existed under India’s arbitration law to make the award unenforceable.The Delhi court’s judgment clears the way for Daiichi to recover its award.

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