Daiichi Sankyo Plea: Delhi HC issues notice to Singh Brothers, next hearing on July 28

New Delhi: Deliberating a plea by Daiichi Sankyo for attachment of Religare's trademark, the Delhi high court on Wednesday issued notice to former Ranbaxy promoters Malvinder Mohan Singh and Shivinder Mohan Singh. The court directed status quo should be maintained in respect to the Religare trademark and any other encumbrances related to it, reports Live Mint.

Daiichi's counsel senior advocate Arvind Nigam contended that as per an affidavit filed by the respondent the mark is essential. It was submitted that the company wants the trademark so that it can be sold and the amount be used for the payment of the dues. The court was also informed that the mark is currently with a subsidiary firm.

In the backdrop, Daiichi Sankyo, which had acquired majority control of erstwhile Ranbaxy from the Singh brothers in 2008 for around Rs 19,800 crore, began arbitration proceedings in Singapore in 2012 against the brothers alleging misrepresentation and concealment of material facts during the takeover.

A Singapore tribunal had in April 2016 passed the award in Daiichi's favor holding that the brothers had concealed information that their company was facing a probe by the US Food and Drug Administration and the Department of Justice while selling its shares.

The high court on January 31 had upheld the international arbitral award passed in the favour of Daiichi and paved the way for enforcement of the 2016 tribunal award against the brothers who had sold their shares in Ranbaxy to Daiichi in 2008 for Rs 9,576.1 crore. Sun Pharmaceuticals Ltd had later acquired the company from Daiichi.

Daiichi had moved the high court here seeking direction to the brothers to take steps towards paying its Rs 3,500 crore arbitration award, including depositing the amount. It had also urged the court to attach their assets, which may be used to recover the award.

Last month, on May 28 the Singapore Court of Appeals had junked the petition filed by Singh brothers, challenging the order of the Singapore High Court which had earlier denied to set aside the arbitration award in favor of Japanese drug firm Daiichi Sankyo Inc.

Also Read: SETBACK: Singapore SC Junks Singh Brothers Plea Against Rs 3500 Crore Arbitral Award In Daiichi Case

The court has now granted a two-week time for filing of the reply on the application. The next date of hearing is 28 July, reports Live Mint.