Daiichi case: HC orders attachment of Singh bros’ assets
The Delhi High Court on Monday ordered the attachment of all unencumbered assets of two holding companies of former promoters of India's Ranbaxy Laboratories to execute the Rs 3,500 crore arbitral award won by Japanese pharma major Daiichi Sankyo.
Justice Jayant Nath issued the warrants for attaching the unencumbered assets of RHC Holdings and Oscar Investments and directed former Ranbaxy promoters and brothers, Malvinder Singh and Shivinder Singh, and 10 others to file within 10 days a list of their unencumbered assets.
"Let war- rants of attachment of all unencumbered assets (of the two companies) be issued," the judge said. The court also restrained RHC Holdings from operating its bank accounts except for payment of salaries and statutory dues till March 23, the next date of hearing. It directed the Singh brothers and others to maintain status quo on all the assets where they have any interest, as it also issued a garnishee order relating to the two companies.
A garnishee order is passed by an executing court directing or ordering a garnishee not to pay money to judgment debtor since the latter is indebted to the garnisher (decree holder). It is an order of the court to attach money or goods belonging to the judgment debtor in the hands of a third person.
During the hearing, senior advocates P V Kapur and Arvind Nigam, appearing for Daiichi, pointed out two affidavits filed by the two companies in 2016 and 2017 giving the list of their unencumbered assets and urged the court to attach the assets. Senior advocate Rajiv Nayyar, appearing for the Singh brothers, companies and others, said the court should appoint a chartered accountant to set the process in motion. The court had earlier restrained the Singhs and others from selling or transferring their shares or any movable or immovable property.
The court restrained RHC Holdings from operating its bank accounts except for payment of salaries and statutory dues till March 23, the next date of hearing