The Singapore Supreme Court dismissed a plea by Malvinder and Shivinder Singh to set aside a Rs 3,500-crore arbitral award, ending the last legal hope for the former promoters of Ranbaxy Laboratories as it's the final forum of appeal.
The dispute stems from Daiichi Sankyo Co. Ltd. buying a 34.82% stake held by the Singh brothers in Ranbaxy in 2008. In 2011, the U.S. Food and Drug Administration ordered Ranbaxy to make a payment of $500 million in settlement for an investigation initiated before Daiichi's takeover.
The Japanese drugmaker said it wasn't aware of the ongoing investigation and initiated arbitration proceedings alleging misrepresentation of facts by the Singh brothers. It approached the Singapore arbitration tribunal in the same year. The tribunal, in 2016, passed the award in favour of the Japanese company, directing the Singh brothers to pay Rs 3,500 crore.
Sun Pharmaceutical Industries Ltd. later acquired the company from Daiichi Sankyo.
The Singh Brothers challenged the award at different forums in India and Singapore. In January 2018, the Delhi High Court rejected their appeal that claimed the provisions of Indian law make this award unenforceable in the country. The court directed that the award is enforceable against the Singh brothers but exempted their children from the liability.
The Delhi High Court is currently hearing a petition seeking enforcement of the arbitration award, which was granted in favour of Daiichi Sankyo.
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The Singh brothers are currently lodged in Delhi's Tihar Jail on a separate complaint by Religare Finvest in the Economic Offences Wing of the Delhi Police.
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