Fortis Healthcare reviews Delhi HC ruling in Daiichi Sankyo case, may approach Supreme Court
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Listen to this article in summarized format In the 213-page judgment, Justice Subramonium Prasad ordered a forensic audit into Fortis' transactions from the time the Singh brothers were in control to the period when IHH took over. Also Read: Delhi HC orders forensic audit of Fortis, IHH and RHT transactions in $4.6-billion Daiichi-Singh case Based on a full reading of the judgment, it is clear that the court can grant appropriate remedies against any person found to have violated court orders and frustrated the execution of the decree. The court has included scrutiny of the acquisition of the controlling interest by IHH and "the role of the concerned parties." The court could, therefore, structure a remedy requiring direct payment to Daiichi Sankyo from "any person" found to have met the above test, a lawyer told ET. Under paragraph 269 of the judgment, the court has made clear it can reverse all transactions. "Should the forensic audit reveal that any bank or financial institution, despite being aware of the subsisting judicial orders, participated in, facilitated or acted in furtherance of transactions having the effect of violating or circumventing these orders, this court would not be powerless to examine the legal consequences flowing therefrom," read the order. Senior advocate Arvind Nigam and advocate Giriraj Subramanium represented Daiichi. The HC held the fact that Fortis, now under new management, can't claim ignorance of wrongdoings of the earlier management. “That said, Fortis is reviewing the judgment in detail in consultation with its legal counsels and will evaluate the appropriate course of action in accordance with applicable law,” it said. IHH Healthcare acquired a 31% stake in Fortis Healthcare in July 2018 for Rs 4,000 crore through a bidding process for fresh shares. It also earmarked Rs 3,000 crore to make an open offer to the public shareholders for an additional 26%, as required under local law. However, the Supreme Court put on hold the sale of FHL to IHH, after Daiichi filed a contempt plea against the Singhs. The drug maker alleged that the brothers violated an earlier top court order by disposing of and encumbering their shares FHL, which affected the scope for enforcing the arbitration award. “The court cannot throw up its hands in despair and state that even if its orders have been flouted, it cannot remedy the wrong other than punishing the wrongdoers with imprisonment. If such a situation were to take place, the courts would lose their standing and the common man would not believe in the efficacy of the justice system,” the judgment said. The scope of the audit is vast. It covers the role of Fortis officers, directors, compliance officers, registrar and transfer agents, depositories and every intermediary involved in processing, approving, recording or giving effect to the transactions. It includes IHH and Northern TK Venture. It covers statutory filings, corporate approvals and regulatory compliances. Critically, it also covers internal correspondence, emails and legal opinions which means every law firm that advised Fortis or IHH through these transactions is now in the frame. Every person who proposed, negotiated, approved, authorised, implemented, certified, or recorded any relevant transaction is subject to examination. Daiichi was represented by senior advocate Arvind Nigam and advocate Giriraj Subramanium. (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
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