Delhi HC orders forensic audit of Fortis, IHH and RHT transactions in $4.6-billion Daiichi-Singh case

Fortis Healthcare is considering the implications of the Delhi High Court's recent ruling in the Daiichi Sankyo arbitration case, with the possibility of seeking recourse from the Supreme Court, according to sources close to the matter. The 213-page judgment issued by Justice Subramonium Prasad on Monday thrust the company into a position of considerable financial risk.

The court ordered a forensic audit into Fortis' dealings spanning from when the Singh brothers were in control, through the period when IHH took over the company. The judgment's broad scope permits the court to impose necessary remedies on any individual determined to have breached court orders and obstructed the execution of the decree. This could potentially lead to a direct payment to Daiichi Sankyo from any party meeting the specified criteria, according to a legal expert.

The high court's ruling under paragraph 269 emphasizes the potential for the reversal of all transactions. If the forensic audit uncovers any bank or financial institution that, despite being aware of the existing judicial orders, participated in, facilitated, or acted in furtherance of transactions that violated or circumvented these orders, the court's authority extends to examining the legal ramifications of such actions.

Daiichi's legal representation, comprising senior advocate Arvind Nigam and advocate Giriraj Subramanium, defended the company against the high court's findings. The court's decision to hold Fortis, now under new management, accountable for any negligence in previous years, underscores the firm's commitment to transparency and adherence to legal obligations.