Businessmen leave the Daiichi Sankyo Co. headquarters in Tokyo. (Photographer: Haruyoshi Yamaguchi/Bloomberg News)

Daiichi Sankyo Moves NCLT To Stay Insolvency Plea Against RHC Holding

Japanese drug major Daiichi Sankyo Co. Ltd. has moved the National Company Law Tribunal to stay the insolvency proceedings against RHC Holding initiated by HDFC Bank Ltd.

A two member bench of the tribunal has asked RHC Holding and its lender HDFC Bank to file a reply within a week. The tribunal has listed the hearing of the matter for Oct. 4.

Daiichi Sankyo, which filed an intervention application in the insolvency plea filed by HDFC Bank, said they have a decree to recover money against RHC Holding. The Delhi High Court had already granted a status quo over sale of assets by RHC Holdings.

Also read: NCLT Allows Shivinder To Withdraw Case Against Brother Malvinder Singh

A tribunal in Singapore had passed the award in favour of Daiichi holding that the Singh brothers (Malvinder Singh and Shivinder Singh), at the time of selling their shares, had concealed information that the Indian company was facing probe by the U.S. Food and Drug Administration and the Department of Justice.

The high court on Jan. 31 had upheld the international arbitral award passed in favour of Daiichi and had 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 Pharmaceutical Industries Ltd. had later acquired Ranbaxy from Daiichi.

It had, however, said that the award was not enforceable against five minors, who were also shareholders in Ranbaxy, saying they cannot be held guilty of having perpetuated a fraud either themselves or through any agent.

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.

Also read: Delhi High Court Directs Malvinder Singh To Deposit S$3.5 Million After Order Violation