Delhi High Court Orders Sale of Fortis Trademark to Enforce ?3,500 Crore Arbitral Award in Daiichi Sankyo's Favor

In a landmark move, the Delhi High Court has ordered the public auction of the Fortis trademark to help enforce a substantial ?3,500-crore arbitration award granted in favor of Japanese pharmaceutical company Daiichi Sankyo. Justice Sachin Datta's decision represents a significant step in the prolonged legal dispute involving the former Ranbaxy promoters, Malvinder and Shivinder Mohan Singh.

The trademark, currently owned by RHC Healthcare Management Services Pvt Ltd, was identified as an asset of the judgment debtors in Daiichi Sankyo's enforcement efforts. The court directed the Joint Registrar to arrange a public auction for the Fortis trademark, noting that it could yield approximately ?191.5 crore towards satisfying the debt.

The dispute dates back to Daiichi Sankyo’s 2008 acquisition of Ranbaxy shares from the Singh brothers for ?9,576.1 crore. In 2016, a Singapore tribunal ruled against the Singh brothers, ordering them to pay ?3,500 crore to Daiichi Sankyo, asserting that the former Ranbaxy promoters misrepresented key facts during the sale. In 2018, the Delhi High Court upheld this award, solidifying Daiichi’s claim. However, the court restricted enforcement against five juveniles among the shareholders, determining they were not complicit in the alleged fraud.

Since the ruling, Daiichi Sankyo has struggled to recover the award amount, now compounded with interest to nearly ?4,900 crore. Counsel for Daiichi Sankyo argued that only a small portion of this sum has been collected thus far. The Japanese company has also sought other legal avenues, including asset seizures, to ensure compliance.

In response to the Delhi High Court’s 2018 affirmation of the arbitral award, the Singh brothers appealed to the Supreme Court, which upheld the high court’s decision in 2018. The brothers contended that the award exceeded the tribunal’s jurisdiction, but their argument was ultimately dismissed.