New Delhi: Fortis Healthcare is reviewing the Delhi High Court decision on the Daiichi Sankyo arbitration case and may approach the Supreme Court, people in the know told ET. The high court on Monday delivered a judgment that creates a massive contingent liability for the company.
In the 213-page judgment, Justice Subramonium Prasad ordered a forensic audit into Fortis’ transactions from the time the Singh brothers were in control to the period when IHH took over.
Based on a full reading of the judgment, it is clear that the court can grant appropriate remedies against any person found to have violated court orders and frustrated the execution of the decree.
The court has included scrutiny of the acquisition of the controlling interest by IHH and “the role of the concerned parties.” The court could, therefore, structure a remedy requiring direct payment to Daiichi Sankyo from “any person” found to have met the above test, a lawyer told ET. Under paragraph 269 of the judgment, the court has made clear it can reverse all transactions.
“Should the forensic audit reveal that any bank or financial institution, despite being aware of the subsisting judicial orders, participated in, facilitated or acted in furtherance of transactions having the effect of violating or circumventing these orders, this court would not be powerless to examine the legal consequences flowing therefrom,” read the order.
Senior advocate Arvind Nigam and advocate Giriraj Subramanium represented Daiichi. The HC held the fact that Fortis, now under new management, can’t claim ignorance of wrongdoings of the earlier management.
