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

Ranbaxy Laboratories Ltd had allegedly concealed information about proceedings against them by American food and drug department.

New Delhi: Supreme Court on Friday rejected the petition of Ranbaxy promoters Malvinder and Shivinder Singh seeking permission to appeal a High Court judgement 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.

A tribunal in Singapore had passed the award in favour of Daiichi holding that the former Ranbaxy promoters and brothers, Malvinder Singh and Shivinder Singh, had concealed information that the Indian company was facing probe by the US Food and Drug Administration and the Department of Justice, while selling its shares.

The high court paved the way for enforcement of the 2016 arbitral award passed by the Singapore tribunal against the Singh brothers who had sold their shares in Ranbaxy to Daiichi in 2008 for Rs 9,576.1 crore. Sun Pharmaceuticals Ltd later acquired the company from Daiichi.