NEW DELHI: The Supreme Court on Friday told Fortis promoters Malvinder and Shivinder Singh to maintain the current status of shares held by one of their companies in Fortis Healthcare Ltd. The order, a result of DaiichiSankyo’s latest petition at the apex court, is expected to block the brothers from selling any shares in their flagship hospital chain until arguments are heard in about a month.
A bench comprising Justices Ranjan Gogoi and Navin Sinha told RHC Holdings Pvt Ltd and Oscar Investments Ltd to maintain “status quo” of Fortis Healthcare Holding’s shareholding in Fortis Healthcare Ltd. The Singhs control RHC and Oscar, which jointly own Fortis Healthcare Holding—the company that holds their stake in the hospital group.
The court also issued notice to the companies, which are expected to submit a response before the next date of hearing likely in four weeks.
The Singhs are currently locked in litigation initiated by Japanese drug maker Daiichi Sankyo, which is trying to enforce an arbitration award that would require the brothers to pay the company Rs 3,500 crore in damages and interest. A Singapore tribunal had granted this award last year after Daiichi alleged the Singhs concealed information of wrongdoing at Ranbaxy while selling it for $4.6 billion in 2008.
Daiichi has moved the Delhi High Court several times since January following reports that the Singhs may strike a deal to sell their controlling stake in Fortis. Last Friday, it approached the Supreme Court to appeal a June 21 high court that would potentially let the Singhs enter corporate transactions provided they maintained the value of the unpledged assets they disclosed earlier this year.
The high court had sought the value of these unpledged assets so that they could be considered to pay Daiichi’s award if the Japanese firm won its ongoing case to enforce it.
Since June, Fortis Healthcare Holdings has pared its shares in the hospital chain to around 37% from 52.20%, Daiichi's counsel had argued at the Delhi High Court on Thursday. The Japanese company fears the move would make it difficult to realise its award if it wins its ongoing case at the high court.
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