Daiichi-Ranbaxy Case: High Court Directs Radha Soami Chief, Others To Pay Back Singh Brothers
Court also directed the judgement debtors, including Singh brothers, to deposit the title deeds of all their immovable properties.
The Delhi High Court has directed 55 individuals and entities, including Radha Soami Satsang Beas head Gurinder Singh Dhillon and his family members, to deposit the amount due to RHC Holdings Pvt. Ltd. in connection with the execution of Rs 3,500-crore arbitral award won by Japanese pharma major Daiichi Sankyo against former promoters of Ranbaxy Laboratories Malvinder and Shivinder Singh.
The court said the amount which these 55 garnishees owe to RHC Holdings of the Singh brothers shall be deposited with the Registrar General of the Delhi High Court within 30 days. A garnishee order is an order against a third party for the recovery of debt or dues.
The court also directed the judgement debtors, including Singh brothers, to deposit the title deeds of all their immovable properties, original share certificates held by them with the registrar general of the high court within 30 days and asked them not to dispose of or alienate with the possession of their assets till the next date of hearing on Nov. 14.
Justice JR Midha said if any party disputes the claim of RHC Holdings or other judgment debtors, they shall file an affidavit to place on record the contention.
The court, in its Sept. 27 order, also directed that the "55 parties shall not dispose of, alienate, encumber either directly or indirectly or otherwise part with the possession of any assets to the tune of the amount mentioned in the affidavit of July 30, except in the ordinary course of business such as payment of salary and statutory dues till the next date of hearing".
The 55 parties include RSSB chief's wife Shabnam Dhillon, sons Gurkirat Singh and Gurpreet Singh and daughter-in-law Nayan Tara Dhillon, RSSB associates' companies, former Religare Enterprises chief Sunil Godhwani and his brother Sanjay Godhwani.
The court had earlier restrained the Singh brothers and others from selling or transferring their shares or any movable or immovable property. The brothers had disclosed their assets to the court in sealed covers in December 2016 and March 2017 during the pendency of Daiichi's plea seeking enforcement of the 2016 arbitral award passed by a Singapore tribunal against them.
A tribunal in Singapore had passed the award in favour of Daiichi holding that the Singh brothers had concealed information that the Indian company was facing probe by the U.S. Food and Drug Administration and the Department of Justice, while selling its shares.
The high court had on Jan. 31, 2018 upheld the international arbitral award passed in favour of Daiichi and paved the way for enforcement of the 2016 tribunal award against the brothers who had sold their shares in Ranbaxy to Daiichi in 2008 for Rs 9,576.1 crore. Sun Pharmaceuticals Ltd. had later acquired the company from Daiichi.
Daiichi had moved the high court seeking direction to the brothers to take steps towards paying its Rs 3,500-crore arbitration award, including depositing the amount. It had also urged the court to attach their assets, which may be used to recover the award.
On Feb. 16 last year, the Supreme Court had dismissed Singh brothers' appeal against the high court verdict upholding the international arbitral award, saying it was not inclined to interfere with it.