SC rejects Ranbaxy promoters' petition to challenge HC ruling in favor of Daiichi Sankyo

Supreme Court rejects the petition of Ranbaxy promoters Malvinder and Shivinder Singh seeking permission to appeal a High Court judgment allowing Daiichi Sankyo to recover about Rs 3,500 crores from them as part of an international arbitration award.

The Delhi High Court last month upheld an international arbitral award of Rs 3,500 crore passed in favour of Japanese pharma major Daiichi Sankyo, which has alleged that the former promoters of Ranbaxy Laboratories Ltd had concealed information about proceedings against them by American food and drug department.

Fortis Healthcare promoters Malvinder Mohan Singh and Shivinder Mohan Singh had resigned as directors from the company's board following the Delhi High Court order upholding the Rs 3,500 crore arbitral award in favor of Daiichi Sankyo.

The Singh brothers had jointly tendered their resignation to the Board of Fortis Healthcare, which will discuss it in the meeting on February 13, the company said in a filing to the BSE.

"Malvinder Mohan Singh, Executive Chairman and Shivinder Mohan Singh, Non-Executive Vice Chairman have tendered their resignation from the directorships of the company," Fortis Healthcare said.

The resignation is intended to free the organization from any encumbrances that may be linked to the promoters, the letter said."In light of the recent High Court judgment upholding the plea of Daiichi Sankyo to enforce the arbitration award, we believe this is in the interest of propriety and good governance," it said.