Daiichi Sankyo moves NCLT to stay insolvency plea against RHC Holding initiated by HDFC Bank

New Delhi: Japanese drug major Daiichi Sankyo has moved the National Company Law Tribunal (NCLT) to stay the insolvency proceedings against RHC Holding initiated by HDFC Bank.

A two-member bench NCLT has asked both - RHC Holding and its lender HDFC Bank to file reply over the move within a week. The tribunal has directed to list the matter on 4 October for next hearing.

Daiichi Sankyo, which has 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 has already granted a status quo over sale of assets by RHC Holdings.

Representational image. News18.

Representational image. News18.

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

The high court on 31 January had upheld the international arbitral award passed in the 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 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.


Updated Date: Sep 18, 2018 14:23 PM

Also See