S’pore SC Bars Harish Salve from Appearing in Daiichi-Ranbaxy Case
Ranbaxy is seeking to set aside over $500-m payout to Daiichi
New Delhi: The Supreme Court of Singapore has disallowed senior advocate Harish Salve from appearing before it on behalf of the corporate sellers of Ranbaxy who are seeking to set aside an award in excess of $500 million by a local arbitration panel to purchaser Daiichi for not revealing the risks involved in the buyout.
Salve, in a first such move by a senior advocate from India, made an application to the Singaporean Supreme Court seeking to argue against the award on behalf of the sellers. He has appeared earlier for the sellers in the Delhi High Court. Former Ranbaxy promoters Malvinder Singh and Shivinder Singh are accused of concealing information regar- ding wrongdoing at Ranbaxy when they sold a majority stake in it to the Japanese firm in 2008. The sellers are seeking to have the award either set aside or a reduction in the quantum, in appeal. Daiichi, on the other hand, has applied to the court to have the award enforced.
A Singapore arbitral tribunal had by a majority decision of 2:1 found that the sellers were liable for fraudulently mis- representing and/or concealing from the buyer the source and severity of the company’s regulatory problems.
The tribunal arrived at the award on the basis of Indian tort law, which mandates that in deceit claims, the party alleging fraud would be entitled to be put back on the position he would have been in, had the wrong not been committed.
This was calculated as the difference between what the buyer paid for the shares and the actual worth of the shares, less any benefits it has received, together with pre- and post-award interest.
The sellers have challenged the quantum of the award and have urged the court to set it aside on the ground that the tribunal had awarded “punitive, exemplary, multiple and/ or consequential damages” expressly prohibited by the arbitration agreement.
Harish Salve FILE PHOTO