Fortis Healthcare Mulls Supreme Court Appeal Over Daiichi Ruling
Fortis Healthcare may challenge a Delhi HC ruling on Daiichi arbitration, citing potential liabilities.
Fortis Healthcare is considering taking its legal battle to the Supreme Court following a recent Delhi High Court decision that could significantly impact its financial standing. The court's ruling involves the Daiichi Sankyo arbitration case, ordering a forensic audit of past transactions, which could lead to substantial liabilities for the healthcare giant.
Delhi High Court Orders Forensic Audit
On Monday, Justice Subramonium Prasad of the Delhi High Court issued a 213-page judgment mandating a forensic audit of Fortis' transactions. This directive spans from the period when the Singh brothers controlled the company to the time when IHH Healthcare took over. The audit aims to scrutinize the acquisition process and the involvement of any parties that might have circumvented court orders.
The court's decision highlights the potential for direct compensation to Daiichi Sankyo, should the audit reveal violations. The judgment specifies that any person found to have frustrated the execution of the decree could be held accountable, possibly reversing previous transactions.
Potential Legal Consequences
The verdict emphasizes that Fortis' current management cannot plead ignorance regarding past management's actions. The court retains the authority to examine legal repercussions against banks or financial institutions that may have knowingly participated in transactions contravening judicial orders.
A lawyer involved in the case noted that the court could demand direct payments to Daiichi Sankyo if the forensic audit uncovers any breaches. This could impose a considerable financial burden on Fortis, prompting the company to evaluate its legal options, including a possible appeal to the Supreme Court.
Legal Representation and Next Steps
Senior advocate Arvind Nigam and advocate Giriraj Subramanium represented Daiichi Sankyo in the proceedings. As Fortis deliberates its next steps, the healthcare provider is under pressure to address the contingent liabilities that the High Court's ruling has created.
The case stems from Daiichi Sankyo's acquisition of a controlling stake in Ranbaxy Laboratories from the Singh brothers, which later led to legal disputes over alleged concealment of critical information. The outcome of this legal saga could have far-reaching implications for Fortis and its stakeholders.