Delhi HC allows Daiichi to inspect documents by Singh brothers for valuations
New Delhi: The Delhi high court on Monday allowed Japanese drugmaker Daiichi Sankyo Co. Ltd to inspect documents submitted by brothers Malvinder and Shivender Singh, former owners of Ranbaxy Laboratories Ltd, disclosing the value of their unencumbered shareholding in various entities.
Justice S. Muralidhar allowed the copies of several affidavits by the Singh brothers and the reports of the chartered accountants of RHC Holding Pvt. Ltd, a firm in which the Singh brothers have significant shareholding, and its subsidiary companies to be inspected by Daiichi. They directed the Japanese company to point out discrepancies between the valuations, if any.
The case relates to enforcement of an arbitral award in proceedings initiated by Daiichi Sankyo against the Singh brothers in relation to its 2008 purchase of a majority stake in Ranbaxy, then owned by the brothers.
The original arbitral award came after the Japanese company alleged that the Singh brothers had concealed crucial information while selling Ranbaxy to it for $4.6 billion in 2008.
In response, a Singapore tribunal had ordered the brothers to pay Rs2,562 crore. The Singh brothers are contesting the ruling in the Delhi high court.
Counsel for Daiichi C.A. Sundaram and Rajiv Nayyar told the court that the Singh brothers had given different valuations for the unencumbered assets under various documents as a result of which they had failed to satisfy the court about the realizable value of the assets.
“Their (Singh brothers) affidavit shows a certain figure while the report by the chartered accountants shows another. How is it that there is a difference of almost Rs1,500 crore between the affidavit filed by them now and the one brought on record today,” remarked Sundaram.
To this, Harish Salve, representing the Singh brothers, submitted that there was bound to be a difference in the two numbers as the dates for valuation were different and the realizable value of assets would vary depending on the circumstances. He added that they were willing to give an explanation in court for any inconsistency pointed out by Daiichi.
The case will be heard next on 27 March.