Singh Brothers & Daiichi case: High Court orders debtors not to sell assets

New Delhi: The High Court has ordered seven companies that owe Malvinder and Shivinder Singh money to dispose of no property, such as property, in order to have sufficient funds to pay the arbitration award Daiichi Sankyo against the brothers. If these companies, called seized third parties, are unable to provide the money that they owe Singh and the companies they control, the badets can be sold and used for the partial payment of the price of 3. 500 crores of rupees.

"The total amount owing to the 38 seized debtors / respondents (Singhs and holding companies) of these 38 companies rises to more than 1,000 crores of rupees," Amit Mishra, a lawyer at Daiichi Sankyo.

On Tuesday, the court ordered these companies not to create third-party interests in badets that they had previously disclosed to the court. Although the court did not freeze these badets, the companies still being allowed to exploit them, it prevented them from separating from these properties, which include land.

He also ordered 31 other third parties seized to disclose the badets that could be used to repay their debt. Following allegations that these companies did not provide the correct addresses, the court also ordered them to provide their addresses to Daiichi so that the Japanese company could serve them with notices to enforce sentence.

The court will hear this case on December 7th.

Email requests sent to RHC Holding Pvt Ltd, the Singh's holding company, went unanswered on Tuesday, after time was running out.

The latest development follows a request by Daiichi asking the court to prevent these companies from divesting themselves of their real estate and to disclose any other property that had not been previously disclosed. The Japanese firm alleged that most of the seized third parties did not have the money to repay their debts, but they did own physical property, such as land, which could be used to recover the amount.

On Tuesday, the High Court also reserved its order on a separate plea of ​​Malvinder Singh, who sought authorization to manage the bank accounts in which he was receiving a pension after resigning from Ranbaxy's management as part of an agreement with Daiichi on the sale of the company.

According to the contract, Singh receives an undisclosed pension every quarter, first from Daiichi, then from Sun Pharma, after the Japanese firm sold Ranbaxy to the Indian drug manufacturer in 2014. " Singh's lawyer claimed that according to according to certain provisions of the law, his pension would be excluded from the application of Daiichi's sentence.