Singh brothers to challenge arbitration award in Singapore courts

The Singh brothers on Friday said they are “evaluating the option to challenge the majority arbitration award in Singapore Courts” – after the Supreme Court dismissed their plea challenging Delhi High Court’s order allowing Japanese drug maker Daiichi Sankyo to enforce a foreign arbitration award of Rs 3,500 crore.

“We respect today’s ruling by the Hon’ble Supreme Court of India,” said RHC Holdings in a emailed statement.

The holding company owns assets of the Singh brothers, including listed entities Fortis Healthcare and Religare Enterprises .

“However, we are disappointed by the decision,” RHC Holdings said..

Malvinder Singh and Shivinder Singh, referred to as the Singh brothers, filed a special leave petition in the Supreme Court on February 7 after the Delhi High Court allowed Daiichi to enforce an arbitral award of Rs 3,500 crore.

RHC Holdings said it believes it has been wronged in the majority Singapore arbitration award.

“The case has hurt and crippled our entire group. We would now like to fight for our Justice and Pride at this point and not for economics only,” RHC Holdings said.

The Singh brothers also contended that there was no misrepresentation or concealment in the Ranbaxy deal to Daiichi Sankyo.

“These are false accusations made against the respondents four years after Daiichi Sankyo bought Ranbaxy (after around 9-10 months of due-diligence),” the RHC Holdings said.

RHC Holdings claimed that the products made by Ranbaxy had always been of good quality, which even the US FDA maintained in their statements, and hence continued to sell in the US.

“Despite all the accusations by Daiichi Sankyo, they made profit from the sale in 2015, which is a clear indication of an intrinsic value of Ranbaxy,” the holding firm added.

After the apex court’s decision, the Singh brothers now have almost no legal options left in India to block enforcement of the arbitration award.

The two-judge bench, consisting of Justice Ranjan Gogoi and Justice R Banumathi, dismissed petitions filed the Singh brothers against Delhi High Court’s order.

“We are not inclined to interfere,” said Justice Ranjan Gogoi.

In April 2016, an arbitration tribunal in Singapore had ruled in favour of Daiichi, directing the Singh brothers to pay around Rs 2,563 crore in damages, plus interest of 4.44 percent per year from November 7, 2008 till 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. The brothers have contested the award in Delhi High Court.