DNA: Supreme Court to decide Daiichi Sankyo’s contempt plea against ex-Ranbaxy promoters on Thursday

6 April 2019: The Supreme Court will decide on April 11 whether to send industrialist brothers Malvinder Mohan Singh and Shivinder Mohan Singh to jail for contempt as the duo failed to give any concrete plan to honour an arbitration order requiring them to pay over Rs 3,500 crore to Japanese firm Daiichi Sankyo.

Present before a bench headed by Chief Justice Ranjan Gogoi, the brothers got enough signs of the court’s ire as the bench listed the contempt petitions against them for Thursday next week and stayed all insolvency proceedings the company is facing before the National Company Law Tribunal (NCLT). The duo was directed to remain present for the next hearing.

The bench, which also had Justices Deepak Gupta and Sanjiv Khanna, told their counsels that the former Ranbaxy promoters, once the flag-bearers of the pharmaceutical industry, had failed to honour the court’s orders to present a concrete proposal for paying what is due to the Japanese firm.

Daiichi approached the apex court seeking contempt action against the duo as they had failed to comply with a Singapore arbitral award. The Japanese drug maker, which purchased Ranbaxy in 2008, had alleged that its former promoters concealed information about a pending probe against them by the US Food and Drug Administration and the US Department of Justice.

In an earlier hearing, Malvinder’s counsel informed the court that he had renounced the world and assigned his properties to a spiritual guru who owes him Rs 6,000 crore. The bench was not happy as it claimed, “You may own half of the world but if there is no compliance of our order to submit a concrete plan to realize the arbitral amount, we will send you to jail in contempt.”

The other brother Shivinder, seeking permission to speak, submitted that things are not good with the company whose net worth is “only about Rs 900 crore”. However, given some years, he undertook to increase the value of company stock to Rs 2,000 crore. The bench said it would consider all arguments when it would take up the contempt plea on Thursday.

Bitter Pill

  • Malvinder & Shivinder Singh have failed to give a plan to pay Rs 3,500 crore to Daiichi Sankyo 
  • Daiichi says the brothers hid information about a probe against them by US bodies
  • Malvinder’s counsel had earlier told the court that his client had renounced the world 

The DNA reported

Categories: General News, India Bankruptcy

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