Delhi HC attaches Ranbaxy promoters’ assets to enforce Daiichi award

The Delhi high court has issued a warrant of attachment against all the assets disclosed by Oscar Investments and RHC Holding, owned by Ranbaxy promoters Malvinder Singh and Shivinder Singh while upholding the enforceability of the Rs3,500 crore arbitral award passed in favour of Ranbaxy's estranged former partner Daiichi Sankyo of Japan.

In its interim order issued today the Delhi high court ordered attachment of all  assets of the promoters of Fortis Healthcare and Religare Enterprises held in RHC Holdings and Oscar Investments.

The high court also ordered the Singh brothers to disclose other unencumbered assets for valuation.

The Delhi high court was hearing Daiichi Sankyo's plea, seeking execution of the 31 January order of the court upholding the enforceability of the Rs3,500 crore arbitral award passed against Singh brothers and others.

The court also issued a warrant of attachment against all the assets disclosed by Oscar Investments Ltd and RHC Holding Pvt Ltd as owned by Ranbaxy promoters Malvinder and Shivinder Singh, in their 2 December 2016 and 14 March 2017 affidavits.

The assets include shares, moveable and immovable property, art as well as debts owed to Oscar Investments and RHC Holding.

The court also restrained RHC Holdings and Oscar Investments from operating bank accounts, however, it allowed RHC and Oscar Invests to operate bank accounts for salary and statutory dues.

The court said that each day's delay costs Singh brothers Rs50 lakh in interest payments.

Justice Jayant Nath further directed the other judgment debtors, ie, Singh brothers and others, to submit an ''up-to-date'' affidavit declaring all the unencumbered assets held by them.

The court had, in its 31 January order, upheld the enforceability of the award passed by a Singaporean arbitral tribunal, which found Singh brothers and others guilty of making false claims in a self-assessment report and of fraudulently misrepresenting and concealing the ''genesis, nature and severity of the US regulatory investigations'' of Ranbaxy when Daiichi Sankyo bought their 34.82 per cent stake for $2.4 billion in 2008.

In April 2016, the arbitration tribunal in Singapore had ruled in favour of Daiichi, directing the Singh brothers to pay around Rs2,563 crore in damages, plus interest of 4.44 per cent per year from 7 November 2008 till the date of the award.

The counsel appearing for Daiichi Sankyo, PV Kapur, submitted that as per the civil procedure code, the assets held by the two companies should be attached and an attachment officer should take custody of any such assets.