SC allows Axis, YES Bank to sell pledged shares of Fortis
The Supreme Court on Thursday said the financial institutions with whom shares of Fortis Healthcare were pledged can be sold or transferred by them.
The SC clarified an earlier order while hearing an appeal of Japanese firm Daiichi Sankyo, which is seeking to enforce the ~35 billion arbitral award against Malvinder Mohan Singh and Shivinder Mohan Singh, the original promoters of pharmaceutical companies Ranbaxy and Fortis.
A bench of Justices Ranjan Gogoi and R Banumathi clarified its earlier status quo order and said that the shares of Fortis Healthcare encumbered by Fortis Healthcare Holding with the financial institutions can be sold, traded or transferred.
“We clarify our interim orders dated August 11, 2017, and August 31, 2017, to mean that the status quo granted shall not apply to shares of Fortis Healthcare held by Fortis Healthcare Holding, as may have been encumbered on or before the interim orders of this court dated August 11, 2017, and August 31, 2017,” the bench said.
Earlier, the SC had restrained institutions including Axis Bank and YES Bank from selling the shares pledged by former Ranbaxy promoters (Malvinder and Shivinder) and ordered to maintain status quo with regard to encumbered and unencumbered shares both.
Malvinder and Shivinder had resigned from the posts of executive chairman and non-executive vice-chairman of Fortis Healthcare, respectively, on February 8.
Daiichi Sankyo had challenged a Delhi High Court order of June 21 last year, allowing the billionaire Singh brothers to sell a stake in Fortis Healthcare on the condition that the disclosed value of their unencumbered assets would remain unaffected.
On January 31, the high court had upheld the April 2016 award of a Singapore arbitration tribunal directing the Singh brothers to pay about ~25.63 billion as damages with the annual interest of 4.44 per cent from November 7, 2008, to the date of the award.