Delhi High Court - Orders
Daiichi Sankyo Company, Limited vs Malvinder Mohan Singh And Ors on 24 April, 2023
Author: Yashwant Varma
Bench: Yashwant Varma
$~35 & 36
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ O.M.P.(EFA)(COMM.) 6/2016, EX.APPL.(OS) 3650/52022,
EX.APPL.(OS) 3763/2022, EX.APPL.(OS) 3764/2022 &
EX.APPL.(OS) 3850/2022
DAIICHI SANKYO COMPANY, LIMITED ..... Decree Holder
Through: Mr. Arvind Nigam and Mr.
Arun Kathpalia, Sr. Adv. with
Mr. Amit Kumar Mishra, Ms.
Devna Arora, Ms. Samridhi
Hota, Mr. Varad Choudhary,
Ms. Gauri Goburdhun, Ms.
Astha Ahuja, Ms. Diksha
Gupta, Mr. Rohan Jaitely and
Mr. Kunal Chatterji, Advs.
versus
MALVINDER MOHAN SINGH AND ORS.
..... Judgement Debtors
Through: Mr. Aditya Dewan and Mr.
Sahil Chandra, Advs. for JD- 6,
7 & 8.
Mr. Jayant Mehta, Sr. Adv.
with Mr. Aman Raj Gandhi,
Mr. Parthasarathy Bose and Mr.
Prang Tuteja, Advs. for Credit
Suisse.
Mr. Abhinav Vashisht, Sr. Adv.
with Mr. H.S. Chandhoke, Mr.
Saleem Hasan, Mr. Sanjeev
Sharma, Mr. Vaibhav Kakkar,
Mr. Sahil Arora, Ms. Sanya
Sud, Mr. Rohit Dahiya, Mr.
Hriday Kochhar, Ms. Vaishali
Goyal and Mr. Siddharth Jain,
Advs. for Fortis Healthcare Ltd.
Ms. Devina Sehgal, Adv. for
JD-16 & 17.
Mr. Sanjiv Kakra, Sr. Adv. with
Mr. Shally Bhasin, Mr.
Chaitanya Safaya, Mr. Prateek
Yadav, Mr. Akash Mohan,
Advs. for JD-23/Axis Bank Ltd.
Signature Not Verified Ms. Sandhya Chawla, Adv. for
Digitally Signed
By:NEHA
Signing Date:26.04.2023
16:37:03
JD-27 & 35.
Mr. Atul Kumar and Mr.
Abhimanyu Sharma, Advs. for
Applicants in E.A 17828/2028.
Mr. Darpan Wadhwa, Sr. Adv.
with Mr. Sandeep Das, Ms.
Anandini Kumari, Mr. Peeyush
Agarwal, Advs. for RCMIAAL.
Mr. Ashish Dholakia, Sr. Adv.
with Mr. Sandeep Das, Ms.
Anandini Kumari, Mr. Peeyush
Agarwal, Advs. for Religare.
Mr. Gaurav Mitra, Mr. Atul
Sharma, Ms. Deboshree Saha
and Mr. Anand Sengar Singh,
Advs. for JD-22.
Ms. Sadhika Gulati, Adv. for R-
23, 24, 26 & 27.
Mr. Giriraj Subramanium and
Mr. Siddhant Jyual, Advs. for
Objector/Structures LLP. And
for applicant in EX. APPL.
317-318/2023.
Mr. Ritik Rai, Sr. Advocate
with Ms. Shally, Mr. Chaitanya
Safaya, Mr. Prateek Yadav, Mr.
Akash Madad and Ms. Gunjan
Mathur, Advocates for JDs-21
& 23.
Mr. Divya Rana, Advocate for
JD-24.
Mr. Manish Jha, Ms. Vishrutyi
Sahni and Ms. Aishna Jain,
Advs. for JD-37.
Mr. Amol Sharma, Ms. Divya
Rana, Advs. for R-24/RBL
Bank Ltd.
Mr. Ajay Bhargava, Ms.
Trishala Trivedi and Mr.
Shivank Diddi, Advs. for E.A.
1365/2021.
36
+ O.M.P.(I) (COMM.) 206/2016
Signature Not Verified DAIICHI SANKYO COMPANY LIMITED ..... Petitioner
Digitally Signed
By:NEHA
Signing Date:26.04.2023
16:37:03
Through: Mr. Arvind Nigam and Mr.
Arun Kathpalia, Sr. Adv. with
Mr. Amit Kumar Mishra, Ms.
Devna Arora, Ms. Samridhi
Hota, Mr. Varad Choudhary,
Ms. Gauri Goburdhun, Ms.
Astha Ahuja, Ms. Diksha
Gupta, Mr. Rohan Jaitely and
Mr. Kunal Chatterji, Advs.
versus
MALVINDER MOHAN SINGH & ORS. ..... Respondents
Through: Mr. Aditya Dewan and Mr.
Sahil Chandra, Advs. for JD- 6,
7 & 8.
Mr. Jayant Mehta, Sr. Adv.
with Ms. Roopali Singh, Ms.
Sayobani Basu and Ms. Durga
Manda and Mr. Akash Ray,
Advs. for Credit Suisse.
Ms. Sandhya Chawla, Adv. for
R-27 & 35.
CORAM:
HON'BLE MR. JUSTICE YASHWANT VARMA
ORDER
% 24.04.2023 EX.APPL.(OS) 3650/52022 in O.M.P.(EFA)(COMM.) 6/2016
1. By means of the present order, the Court proceeds to dispose of the claim laid by the enforcement petitioner relating to the shares which stood pledged with RBL Bank Ltd. ["RBL"], the respondent no. 24 herein. The prayers made on the application read thus:-
"In light of the aforesaid facts, it is humbly prayed that this Hon'ble Court may be please to:
(i) Direct all Noticee Banks and FIs as listed in paragraph 2 of the application to file an affidavit and disclose the amount of FHL shares still retained by them;
(ii) Restrain the Noticee Banks and FIs as listed in paragraph 2 of the application from selling, alienating, encumbering and/or transferring in any manner the shares of FHL still retained by them;Signature Not Verified (iii) Direct sale of the shares of FHL as mentioned in paragraph Digitally Signed By:NEHA Signing Date:26.04.2023 16:37:03
12 of the application;
(iv) Appoint a court commissioner for the purpose of effectuating the sale and realisation of shares of FHL as mentioned in paragraph 12 of the application;"
2. The issues arising out of the 4.20 lakh equity shares of Fortis Healthcare Limited ["FHL"] held by RBL were noticed in some detail by the Court in its order dated 02 March 2023. As would be evident from a reading of the aforesaid order, the Court had taken note of the observations as appearing in the Supreme Court's order of 15 April 2021 passed in S.L.P (C) 20417/2017 and Cont. Pet. (C) 2120/2018. RBL had in the course of those proceedings, made a disclosure of holding 4.20 lakh FHL shares. That pledge is stated to have been created in connection with credit facilities extended by it and which loan accounts had since then been squared up with all amounts advanced duly recovered. The Supreme Court in terms of paragraph 30(e) of its final order of 22 September 2022 had observed that certain FHL shares which may still be held by financial institutions including RBL Bank shall be available to the executing court and abide by further orders being passed in these proceedings.
3. In its order of 02 March 2023, this Court had taken note of the stand of RBL which had submitted that all amounts due and payable to it had been recovered. It had however raised a claim of Rs. 15 lakhs towards litigation costs already incurred and an identical sum for future costs that it may be saddled with. Taking note of the fact that RBL's claim over the 4.20 lakh shares extended only to Rs. 30 lakhs at this stage, the Court had framed directions for RBL to affect sale of 4.20 lakh FHL equity shares.
4. Pursuant to the aforesaid direction, FHL in terms of its affidavit of 31 March 2023, has provided the details of the proceeds garnered from the sale of 4.20 lakh equity shares of FHL. The aforesaid details stand set out in a chart placed in Para 3 of that affidavit and which is Signature Not Verified Digitally Signed By:NEHA Signing Date:26.04.2023 16:37:03 extracted hereinbelow:-
S. Trade Settlement No. of Net rate Net amount
No. date date shares per unit realized (Rs.)
(Rs.)
1. 21.03.2023 23.03.2023 2,20,000 253.7476 5,57,66,271/-
2. 23.03.2023 24.03.2023 1,00,000 250.1005 2,49,82,672/-
3. 24.03.2023 27.03.2023 1,00,000 246.2487 2,45,97,878/-
TOTAL 10,53,46,821/-
5. The Court is apprised that in terms of the aforesaid, a deposit of Rs. 10,53,30,271/- has been duly made by RBL. Since no other claim has been raised in respect of the 4.20 lakh equity shares and the amounts recovered from the sale thereof, the Court comes to conclude that there appears to be no legal impediment for the release of the amount presently held in deposit in favour of Daiichi. The Court also bears in mind its reasons and conclusions as set out in its judgment rendered today in EX.APPL.(OS) 3651/2022 in this respect.
6. All that may be additionally observed is that out of the entire amount as deposited by RBL before this Court, a sum of Rs. 30 lakhs shall be retained in order to examine and evaluate the claim of RBL as noted above. It is further clarified that the present directions are confined to the sale of FHL shares held by RBL and shall not impact the claims of other banks and financial institutions who are parties to this application as well as the larger prayers which are addressed.
7. Accordingly, and for the aforesaid reasons, the Registrar General is requested to release a sum of Rs. 10,23,30,271/- to Daiichi the execution petitioner upon due verification out of the sums deposited by RBL. The amount of Rs. 30 lakhs which stands retained shall be placed by the Registrar General of the Court in an interest- bearing security initially for a period of 1 year. The amount so retained shall abide by further directions to be issued on this application.
Signature Not Verified Digitally Signed By:NEHA Signing Date:26.04.2023 16:37:038. The issues raised by other financial institutions in the present application shall be taken up for consideration on the next date fixed.
9. List on 10.05.2023 as part heard in the category of "End of Board."
EX.APPL.(OS) 3763/2022, EX.APPL.(OS) 3764/2022 & EX.APPL.(OS) 3850/2022 in O.M.P.(EFA)(COMM.) 6/2016
10. These three applications seek the framing of directions for appointment of forensic auditors in relation to transactions which ensued between the seventeen respondent banks and financial institutions and the judgment debtors, the transaction between FHL and RHT Health Trust ["RHT"] and the flow of funds between companies controlled by MMS and SMS to the Religare group of companies.
11. Mr. Nigam, learned senior counsel appearing for the execution petitioner, submitted that arguments may be heard on the three applications together notwithstanding the individual defenses and objections that may have been filed by the noticed respondents on the aforenoted three applications.
12. Mr. Vashisht, learned senior counsel appearing for the respondent in EX.APPL.(OS) 3764/2022, submitted that the set of respondents in each application have asserted separate objections to the prayer for a forensic audit being ordered by the Court.
13. Notwithstanding the above and since Mr. Nigam has chosen to address submissions in continuation on the three applications noted above, it may only be clarified that each set of respondents in the three applications shall be heard separately and independently in opposition to the prayers made in these applications.
14. Mr. Nigam, learned senior counsel, has concluded his submissions on EX.APPL.(OS) 3763/2022 in O.M.P.(EFA)(COMM.) Signature Not Verified Digitally Signed 6/2016.
By:NEHA Signing Date:26.04.2023 16:37:0315. In order to enable him to commence arguments on EX.APPL.(OS) 3764/2022 in O.M.P.(EFA)(COMM.) 6/2016, list again on 10.05.2023 as part heard in the category of "End of Board."
YASHWANT VARMA, J.
APRIL 24, 2023 SU/bh Signature Not Verified Digitally Signed By:NEHA Signing Date:26.04.2023 16:37:03