SC dismisses Singh bros' plea against Delhi HC order enforcing Rs 3,500-crore arbitration award With apex court’s decision, the Singh brothers have almost exhausted their legal options in India to block the arbitration award payment

Moneycontrol News feb 16,2018

The Supreme Court on Friday dismissed the petition filed by Singh brothers challenging the Delhi High Court's order allowing Daiichi Sankyo to enforce a foreign arbitral award of Rs 3,500 crore.With apex court’s decision, the Singh brothers have almost exhausted their legal options in India to block the arbitration award payment.The two-judge bench consisting justice Ranjan Gogoi and justice R Banumathi dismissing petitions have found no fault with Delhi High Court’s order.“We are not inclined to interfere,” said justice Ranjan Gogoi.

Malvinder Singh and Shivinder Singh, referred to as Singh brothers, filed a special leave petition in the Supreme Court on February 7 after the Delhi High Court allowed Daiichi to enforce arbitral award of Rs 3,500 crore.In a 115-page verdict, justice Jayant Nath upheld the April 2016 award by an arbitration tribunal in Singapore which had ruled in favour of Daiichi.The tribunal had directed the Singh brothers to pay about Rs2,563 crore in damages, plus interest of 4.44 percent per year from 7 November 2008 to the date of the award.

The tribunal found the brothers 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 bought their 34.82 percent stake for USD 2.4 billion in 2008.The total deal value was USD 4.6 billion. Singh brothers have contested the award in Delhi High Court.On Thursday, Daiichi approached Delhi High Court complaining about delay by Singh brothers in honouring Delhi High Court order.Fortis shares have dropped 8.87 percent and were trading at Rs 130.95 on BSE at 1.53 pm, the benchmark index declined 0.70 percent to 34,057.19 points.