Fortis Healthcare Considers Supreme Court Appeal in Daiichi Sankyo Case

Fortis Healthcare is contemplating an appeal to the Supreme Court following a recent Delhi High Court decision that imposes significant financial implications on the company. The ruling, linked to the ongoing arbitration case with Daiichi Sankyo, mandates a forensic audit of Fortis' past transactions, potentially leading to direct financial liabilities.

High Court Orders Forensic Audit

The Delhi High Court's comprehensive 213-page judgment, delivered by Justice Subramonium Prasad, calls for a detailed forensic audit of Fortis' financial activities. This audit will scrutinize transactions dating back to when the Singh brothers controlled the company, through to the period when Malaysian healthcare giant IHH Healthcare Berhad acquired a controlling stake.

The court's decision, which could reverse transactions if they are found to contravene existing judicial orders, places a substantial contingent liability on Fortis. The judgment specifies that any bank or financial institution involved in transactions that violate court orders could face legal consequences.

Potential Supreme Court Appeal

In light of these developments, Fortis Healthcare is evaluating its legal options, including a potential appeal to the Supreme Court. Legal experts have indicated that the High Court's ruling allows for remedies against parties found responsible for undermining the execution of the decree in favor of Daiichi Sankyo.

Senior advocate Arvind Nigam and advocate Giriraj Subramanium represented Daiichi Sankyo in the proceedings. The court emphasized that Fortis, under its current management, cannot disclaim responsibility for the actions of its former leadership team.

Implications for Fortis and IHH

The judgment also examines the acquisition of Fortis by IHH, spotlighting the role of all involved parties. The High Court has underscored its authority to demand direct payments to Daiichi Sankyo from any party found to have breached the court's directives.

This development adds a new layer of complexity to the longstanding legal battle between Fortis and Daiichi Sankyo, which has its roots in the sale of Ranbaxy Laboratories to Daiichi by the Singh brothers in 2008. The ongoing dispute has seen multiple legal proceedings, with the current focus on the execution of a $500 million arbitration award granted to Daiichi by a Singapore tribunal in 2016.

Fortis Healthcare's decision on whether to approach the Supreme Court will be closely watched, as it has far-reaching implications not only for the company but also for IHH and other stakeholders involved in the case.