Delhi HC Allows Japanese Pharma Company Daiichi To Withdraw Rs 20.5 Crores Deposited With Court

The Delhi High Court has allowed Japanese Pharma Company Daiichi Sankyo to withdraw the entire amount of Rs 20.5 Crores held in deposit with the Court and received in terms of the Supreme Court Order dated September 22, 2022.

The bench of Justice Yashwant Varma directed the Registrar General to take expeditious steps for its release subject to due verification.

Senior Advocate Arvind Nigam appeared for execution petitioner- Daiichi Sankyo whereas Senior Advocate Jayant Mehta and Advocates Aditya Dewan and Devina Sehgal appeared for Respondents.

The Court was dealing with the plea of Daiichi Sankyo for being accorded permission to withdraw the amount of Rs 20,54,65,962.22 transmitted to the Registrar General of the High Court pursuant to the order of Supreme Court by which two former promoters of Fortis Healthcare Ltd were sentenced to six months of imprisonment in a contempt case.

The original execution petition pertains to a Foreign Award passed by an Arbitral Tribunal. 20 respondents were arrayed in these proceedings and the aforesaid Award was affirmed by the High Court.

The aforesaid judgement was affirmed by the Supreme Court on 16 February 2018 when the special leave petitions preferred by the Judgment Debtors came to be dismissed. After the Supreme Court held them guilty of contempt, the right officials of Indiabulls group of firms deposited Rs 17.9 Crores with the registry of the Supreme Court. The Court directed transfer of the said amount to the executing Court along with the interest accrued.

The release of the amount was objected to by Indiabulls Housing Finance Limited.

The High Court observed that the orders of the Supreme Court have categorically found that the sale of those shares by IHFL was in clear violation of the sequestration orders.

“…this Court finds it unable to appreciate how IHFL could have garnered the strength to reagitate a claim which not only stood negatived by the Supreme Court but one which had led to a finding of guilt being entered against it in the contempt petition. The deposit that was made by IHFL was undisputedly one which was affected to purge the contempt which had been found to be proven.”, the Court noted.

The Court remarked that IHFL sought to reassert a right that stood quashed by the Supreme Court. The Court also noted that the objections raised by IHFL not only proceeded along lines identical to those which were urged before the Supreme Court, it was also based on the same evidence and material.

Thus the Court held that IHFL acted in sheer abuse of the process of Court and imposed a cost of Rs 10 Lakhs on IHFL.

Cause Title- Daiichi Sankyo Company, Limited v. Malvinder Mohan Singh & Ors (Neutral Citation Number : 2023:DHC:2688)

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