Ensure compliance of orders directing status quo with respect to assets, Delhi HC directs Singh Brothers

The Delhi High Court yesterday directed former Ranbaxy owners, Malvinder and Shivinder Singh (Singh brothers) to ensure compliance of its earlier orders directing them to maintain the status quo with respect to their properties, assets, and interests.

The direction was passed by a Single Judge Bench of Justice JR Midha in an application by Japanese Drugmaker, Daiichi Sankyo seeking to restrain Singh Brothers from settling their ongoing dispute with Religare FinVest by disposing of their assets behind Court’s back.

While Daiichi Sankyo is in the middle of execution proceedings against the brothers and several others for a Rs 3,500 crore arbitration award, Religare FinVest has accused Singh brothers of misappropriation of funds to the tune of over Rs 2,000 crore in an FIR lodged with the Economic Offences Wing of Delhi Police.

Singh Brothers are currently in judicial custody in relation to the criminal case by Religare FinVest. After they moved an application for interim bail, the Court of Metropolitan Magistrate had granted an opportunity to the parties to settle the dispute between them.

Apprehending disposal of assets to compensate Religare FinVest, Daiichi Sankyo moved an application to restrain Singh Brothers from doing so.

When the application came up for hearing yesterday, counsel appearing for Malvidner Singh and Shivinder Singh stated that they were fully aware of the order of status quo passed by the Court.

Counsel for Shivinder Singh added that the connotation ‘settlement’ for him was not in monetary terms.

The Court was also informed that till date, there has been no settlement between the parties.

In view of the statements, the Court disposed of the application with the direction to ensure compliance of the orders directing them to not dispose of, alienate, encumber either directly or indirectly or otherwise part with the possession of any assets or interests in the meantime.

As per the FIR, Singh Brothers, in collusion with former Religare CMD Sunil Godhwani and other accused, siphoned off funds of Religare FinVest through unsecured loans to the tune of Rs 2,397.

The Economic Offences Wing of the Delhi Police had arrested the Singh brothers, Godhwani and others earlier this month in a complaint by Religare FinVest which was under the absolute control of the Singh Brothers.

Daiichi Sankyo was represented by Senior Advocate Arvind Nigam, briefed by P&A Law Offices.