Fortis Healthcare Considers Supreme Court Appeal Over Daiichi Sankyo Ruling

Fortis Healthcare is currently evaluating a recent Delhi High Court decision that could significantly impact the company's financial liabilities. The court's ruling pertains to an arbitration case involving Daiichi Sankyo and orders a forensic audit of Fortis' past transactions.

High Court Orders Forensic Audit

The Delhi High Court's decision involves a detailed 213-page judgment by Justice Subramonium Prasad, which mandates a forensic audit of Fortis Healthcare's transactions. This audit will scrutinize activities from the period when the Singh brothers had control to when IHH Healthcare took over. The judgment outlines that any party found to have violated court orders or impeded the decree's execution could face legal consequences.

The court's mandate includes examining the acquisition of controlling interest by IHH and the roles of involved parties. This could lead to remedies that require direct compensation to Daiichi Sankyo if any wrongdoing is established. The judgment also states that any bank or financial institution participating in transactions that contravene existing judicial orders will be subject to examination for legal repercussions.

Potential Supreme Court Appeal

Sources indicate that Fortis Healthcare may appeal the Delhi High Court ruling to the Supreme Court, given the potential contingent liabilities highlighted by the judgment. The company is assessing the implications of the court's decision, which challenges Fortis' current management to address past management's alleged misconduct.

Senior advocate Arvind Nigam and advocate Giriraj Subramanium represented Daiichi Sankyo in the proceedings. The court emphasized that new management cannot claim ignorance of previous management's actions.

The situation underscores the ongoing legal complexities stemming from the Daiichi Sankyo arbitration case, as Fortis Healthcare navigates its next steps in response to the ruling.