NEW DELHI: The Supreme Court on Thursday reserved its order on a contempt plea filed by Japanese pharmaceutical firm Daiichi Sankyo against former Ranbaxy promoters Malvinder Singh and Shivinder Singh over non-payment of an over Rs 3,500 crore arbitration award. A bench headed by Chief Justice of India Ranjan Gogoi, who heard both the sides before reserving the order, clarified that the court is only deciding on the issue of ‘contempt of court’.
During the hearing, senior advocate Fali S Nariman, representing Daiichi, told the bench that former Malvinder Singh had given an undertaking in the Delhi High Court and that the value of their unencumbered assets was only Rs 452 crore.
Senior advocate Kapil Sibal, appearing for Malvinder Singh (elder of the two brothers), told the bench that since the enforcement proceedings against the brothers were pending before the High Court, all the bank accounts belonging to Malvinder have been frozen by the court. The Japanese firm’s contempt plea against the Singh brothers seeks recovery of around Rs 4,000 crore from them as directed by the Singapore arbitration tribunal.
Daiichi Sankyo had bought Ranbaxy in 2008.
Later, the drug-maker had moved the Singapore arbitration tribunal, accusing that while selling the shares, the Singh brothers had concealed information that Ranbaxy was facing a probe by the US Food and Drug Administration and the Department of Justice.