Fortis Healthcare Considers Supreme Court Appeal Post Delhi HC Ruling

Fortis Healthcare is contemplating an appeal to the Supreme Court following a recent Delhi High Court ruling that poses a substantial financial risk. The ruling, part of the ongoing Daiichi Sankyo arbitration case, mandates a forensic audit of Fortis’ historical transactions, a move that could lead to significant liabilities for the healthcare provider.

Delhi High Court's Forensic Audit Demand

The Delhi High Court's decision, delivered by Justice Subramonium Prasad, orders a detailed forensic audit of Fortis’ past transactions. This audit will scrutinize dealings from the era of the Singh brothers' control up to the point when IHH Healthcare acquired a controlling interest. The court's judgment spans 213 pages and includes provisions to reverse any transactions found to contravene judicial orders.

The ruling emphasizes that Fortis, despite its current management, cannot claim ignorance of prior management's actions that might have violated court orders. The forensic audit aims to identify any violations and the potential for reversing transactions or imposing direct compensation to Daiichi Sankyo.

Potential Supreme Court Appeal

In light of these developments, Fortis Healthcare is weighing the option of appealing to the Supreme Court. The company is assessing the judgment's implications, particularly its impact on their financial standing due to the contingent liabilities involved.

A lawyer involved in the case highlighted that the court's decision allows for remedies against any party found to have undermined the execution of the original decree. This includes the possibility of direct payments to Daiichi Sankyo if the forensic audit reveals wrongdoing.

Legal Representation and Next Steps

The Delhi High Court's ruling has prompted Fortis to consider its next legal steps carefully. Senior advocate Arvind Nigam and advocate Giriraj Subramanium represented Daiichi Sankyo in the proceedings. They successfully argued that the court should enforce its orders and scrutinize any transactions that might have circumvented them.

The case's outcome remains uncertain, pending Fortis Healthcare's decision on whether to escalate the matter to the Supreme Court. The company is reportedly consulting with its legal team to explore all available options.