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Delhi HC seeks Fortis reply to Daiichi’s contempt plea by 10 August

LiveMint logoLiveMint 04-07-2017 Shreya Agarwal

New Delhi: Japan’s Daiichi Sankyo Co. Ltd on Tuesday moved a contempt application against Fortis Healthcare Holdings Pvt. Ltd (FHH), in the Delhi high court.

The court directed FHH to file its response on the matter by 10 August.

FHH has been selling its unencumbered assets without applying to the court as directed in previous court orders, Daiichi said.

The Japanese drug maker had moved the court earlier in June with a contempt plea against former Ranbaxy Laboratories Ltd promoters Malvinder and Shivinder Singh, alleging that the proposed stake sale by them in Fortis Healthcare Ltd was in contravention of earlier orders.

ALSO READ: Delhi HC allows Singh brothers to sell Fortis stake with a rider

“Everyday a breach is happening,” said Mukul Rohatgi, counsel for Daiichi.

According to Rohatgi, an order previously passed in the matter by Delhi high court required that before unencumbered assets of RHC Holdings Pvt. Ltd (RHC) and Oscar Investments Ltd (Oscar), which are wholly owned by FHH, were disposed of, an application should have been filed in court by FHH but no such application was filed.

According to Fortis Healthcare Holdings, “the total amount of RHC and Oscar’s unencumbered assets is sufficient to meet the liability...”

In May last year, the Singh brothers were asked by an arbitration court in Singapore to pay damages to the tune of Rs2,562.78 crore, for concealing facts from Daiichi Sankyo when they sold their 34.82% stake in Ranbaxy to the latter for $2.4 billion in 2008.

The case will be heard next on 11 July.

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