Daiichi case: Monetary enforcement against Singh brothers’ children challenged
A Rs2,562 crore arbitral award passed against Malvinder Singh and Shivender Singh cannot be enforced against their minor children, a lawyer told the Delhi High Court
New Delhi: A Rs2,562 crore arbitral award passed against brothers Malvinder Singh and Shivender Singh cannot be enforced against their minor children, a lawyer told the Delhi High Court on Friday.
Sandeep Sethi, counsel for the four children, submitted before justice Jayant Nath that no liability could be claimed from the minors because they had no legal guardian to represent them in the arbitration proceedings.
“Enforcement of the award against the minors would be contrary to the fundamental policy of the country, which is to protect their estate,” Sethi said.
He added that Malvinder Singh had acted as an agent of the children in the arbitration proceedings, which is contrary to the law.
The case relates to enforcement of an arbitral award in proceedings initiated by Japanese pharmaceutical company Daiichi Sankyo Co. Ltd against the Singh brothers in relation to its 2008 purchase of a majority stake in Ranbaxy Laboratories Ltd.
The arbitral award, which is being contested in court, came after the Japanese company alleged that the Singh brothers had concealed crucial information while selling Ranbaxy to it for $4.6 billion. In response, a Singapore tribunal had ordered the brothers to pay Rs2,562 crore to Daiichi Sankyo.
Sun Pharmaceutical Industries Ltd purchased Ranbaxy from Daiichi in a $3.2 billion acquisition it completed in 2015.
The case will be heard next on 11 May.