Delhi High Court Seeks Fortis’ Reply To Daiichi’s Plea Against Manipal Deal
The Delhi High Court today asked Fortis Healthcare Ltd., which is going through the process of restructuring, to give its response on Japanese pharma major Daiichi Sankyo’s plea to maintain status quo of the assets of the hospital chain.
Justice Jayant Nath made Fortis Healthcare a party in the fresh application of Daiichi after the Fortis counsel said it was not a party to the Rs 3,500 crore execution suit filed by the Japanese firm against the Ranbaxy Laboratories Ltd. founders -- Malvinder and Shivinder Singh.
The court was hearing Daiichi’s plea to stall the restructuring process until it was paid the Rs 3,500 crore arbitration award by Fortis’ erstwhile promoters, the Singh brothers. The court listed the matter for further hearing on April 25.
The court also asked RHC Holding Pvt. and Oscar Investments Ltd., companies controlled by the Singhs, to explain how they had arrived at the realisable value of shares in March 14, 2017 order.
It also asked the two companies to disclose their unencumbered shareholding in Fortis Healthcare through Fortis Healthcare Holdings Pvt., as on March 6 last year and today. RHC and Oscar hold shares in Fortis Healthcare through Fortis Healthcare Holdings.
In its application, Daiichi, represented by senior advocate Arvind Nigam, has sought a direction to the Singhs and their companies to fulfill the undertaking given to the court in June last year, before initiating any scheme of restructuring or transaction involving Fortis Healthcare.
During the hearing, senior advocate P Chidambaram, appearing for Fortis Healthcare, argued that the company was not a party in the suit and no order can be passed against it. He said that the restructuring process would not be concluded any time soon and take some time as Fortis Healthcare would require several regulatory approvals.
He said that earlier Fortis Healthcare Holdings had 52 percent shares in Fortis Healthcare but today the holding company owned only 0.67 percent shares.
Senior advocate Rajiv Nayyar, appearing for the Singh brothers, said they should not be restrained from going abroad as they were not flouting any court order.
The high court had earlier ordered the attachment of all unencumbered assets of the two holding companies of the Singhs.