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Supreme Court Holds Former Ranbaxy Promoters Malvinder Singh, Shivinder Singh Guilty Of Contempt Of Court

Malvinder Singh, Shivinder Singh Were Found Guilty Of Contempt Of Court In Case Filed By Japanese Firm Daiichi Sankyo.

News Nation Bureau | Edited By : Pawas Kumar | Updated on: 15 Nov 2019, 02:34:40 PM
Supreme Court said that Singh brothers violated its order

Supreme Court said that Singh brothers violated its order (Photo Credit: PTI File)

New Delhi:

The Supreme Court has held ex-Ranbaxy promoters Malvinder Singh, Shivinder Singh guilty of contempt of court in case filed by Japanese firm Daiichi Sankyo. The apex court has said that Singh brothers violated its order asking them not to divest their shares in Fortis Healthcare Limited. The case relates to the implementation of the arbitration award that Singh brothers were ordered to pay to Daiichi in 2016. Daiichi Sankyo, in March 2019, filed a contempt plea against the brothers accusing them of disposing of their assets in violation of the court order. Daiichi Sankyo has alleged the brothers created encumbrances on 1.2 million shares of Fortis in violation of court orders.

The apex court had earlier asked the Singh brothers to give it a plan as to how they would honour the arbitral award of Rs 3,500 crore granted by a Singapore tribunal against them and in favour of Japanese drug manufacturer Daiichi Sankyo.

A bench comprising Chief Justice Ranjan Gogoi and Justice Deepak Gupta held the former Ranbaxy promoters guilty of contempt of court and said that they had violated its earlier order by which the sale of their controlling stakes in Fortis Group to Malayasian firm IHH Healthcare was put on hold.

Supreme Court said that they would hear the Singhs on the quantum of sentence later. The Japanese firm had filed contempt petition against the former Ranbaxy promoters alleging that execution of their arbitral award had been in jeopardy as the Singh brothers disposed of their controlling stakes in Fortis Group to the Malaysian firm.

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First Published : 15 Nov 2019, 11:25:28 AM