Daiichi Sankyo Case: Supreme Court Asks Banks & Financial Institutions To Disclose Documents Related To Fortis Healthcare- IHH Healthcare Deal. [READ JUDGMENT]

Judiciary Feb 22, 2021 Snehal Khemka ( Editor: Ekta Joshi ) 7 Shares

A three-Judge Bench comprising of Justices UU Lalit, Indira Banerjee and KM Joseph on Thursday, (February 18, 2021) directed the banks and financial institutions to place on record various documents related to loans advanced or financial accommodations extended in respect of alienation of Fortis Healthcare's shares through its deal with IHH healthcare, along with the nature of both encumbered and unencumbered securities offered with such loan arrangements.

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The aforementioned matter by the arbitral tribunal ordered the “Singh Brothers”, Malvinder Singh and Shivinder Singh to pay a sum of rs. 3500 crore to Daiichi. It was held that the Singh Brothers had concealed the investigations by the United States Food and Drug Administration (“FDA”) and Department of Justice (“DOJ”) against Ranbaxy in the United States of America at the time of the deal, the news of which came to Daiichi only in the year 2009. Since contractual damages on a tortious basis aim to restore the parties to their pre-contractual position, the tribunal held that the claimant is entitled to recover damages on account of fraudulent misrepresentation and concealment of material facts while selling their shareholding in Ranbaxy to Daiichi in 2008.

The court, while initiating suo moto contempt proceedings against Fortis Healthcare also contended that concerned individuals and corporate entities could not sell the shares held by FHHPL directly and, therefore, a device was mechanised along with a structure wherein the shares were proceeded against by the lenders.

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It was concluded that the intervention of the banks in the matters pending before the Court, were not removed from the fact that they were aware of the consequences granted in favour of M/s. Daiichi Sankyo Company Limited; furthering that the role of banks and financial institutions would, therefore, require closer scrutiny in the upcoming months.

[READ JUDGMENT]

Question on Extension of Uploading EWS Certificates Deadline for Civil Services Examination: Supreme Court issues Notice on UPSC’s Plea

Judiciary Feb 26, 2021 Tanya Sehrawat ( Editor: Ekta Joshi ) 0 Shares

Various Special Leave Petitions had been filed pleading for extension of the deadline for uploading the Economically Weaker Sections (EWS) Certificates in order to avail reservations under the said category. A notice on the same was issued by the Hon’ble Supreme Court on Thursday (February 18, 2021) responding to the question. The matter was heard by a bench comprising Justices Rohinton F. Nariman, BR Gavai and Hemant Gupta. The bench went on to issue a notice on the SLPs along with the...

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Supreme Court sets Tata Motors Ltd. free of liability, says Manufacturer liable only if they had prior knowledge

Judiciary Feb 23, 2021 Namya Bose ( Editor: Ekta Joshi ) 13 Shares

A three-judge bench of the Supreme Court recently observed that the manufacturer cannot be held guilty unless it is proved that the manufacturer was in fact aware of the wrongful doings of the dealer in a scenario when the relationship is that of a “principle to principle” basis. The dealer here refers to ‘Vistar Goa’, who sold a 2009 model car of Tata Motors, saying it was a 2011 model, thus representing false information. On filing of complaint, Tata Motors Ltd. was added...

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