Daiichi Sankyo moves NCLT to stay insolvency plea against RHC Holding

Japanese drug manufacturer, Daiichi Sankyo Co Ltd, yesterday moved the National Company Law Tribunal seeking a stay on an ongoing insolvency litigation against Malvinder Singh and Shivinder Singh owned RHC Holding Pvt Ltd.

HDFC Ltd. had moved an insolvency petition against RHC Holding in July this year, seeking initiation of a corporate insolvency resolution process against the company, for an alleged default of over Rs. 40 crores.

A two-member Bench comprising Member (Judicial) Deepti Mukesh and Member (Technical) S. K. Mohapatra directed RHC Holding and its lender HDFC Ltd. to file their reply to Daiichi Sankyo’s intervention application within a week.

It is Daiichi Sankyo’s case that in the event a moratorium is imposed on the sale of RHC Holdings’ assets after HDFC’s insolvency petition is admitted, its right to recover an arbitration award of over Rs. 3500 crores from the corporate debtor as well as its related parties would be severely jeopardized.

Counsel appearing for Daiichi Sankyo Senior Advocate Rajiv Dutta (briefed by P&A Law Offices) said that through Singh Brothers, RHC Holding has given several assurances towards the realization of the decretal amount, before the Delhi High Court which is currently seized with the award’s execution proceedings.

The Tribunal was informed that a Court Commissioner has been appointed to ascertain the value of the assets held by RHC Holding while its assets have already been attached by the High Court, pursuant to the execution proceedings by Daiichi.

Counsel appearing for HDFC, Advocate Amrita Singh submitted that the applications were being filed collusively with RHC Holding to delay the admission of the insolvency petition and thwart the insolvency process.

HDFC’s request for an interim direction to sell RHC Holding’s assets was also declined by the Tribunal.

Earlier this month, younger brother Shivinder Singh had filed a Section 241 petition against elder brother Malvinder Singh and others alleging oppression and mismanagement of RHC Holding.

The said petition was subsequently withdrawn by Shivinder. 

RHC Holding was represented by Advocate Aditya Dewan.

The matter would be next heard on October 4.

Image Courtesy: PTI