Appeal Court clears Fidelity Bank in fundamental rights case

The Supreme Court has decided not to interfere with the Delhi High Court's recent orders in the ongoing dispute between Japanese pharmaceutical giant Daiichi Sankyo and Fortis Healthcare Ltd. This ruling clears the path for a forensic audit aimed at uncovering assets linked to the enforcement of an arbitral award against former Fortis promoters.

The hearing, presided over by a three-judge bench, did not delve into the merits of the High Court's findings, focusing instead on the asset tracing process related to the 2016 arbitral award, which has yet to be executed against the former Fortis promoters. Justice Joymalya Bagchi, during the proceedings, emphasized that merely being a public shareholder in a listed company does not exempt individuals from a forensic audit.

He also cautioned the parties, stating, "You may not be a judgment debtor, but you are an enabler of the judgment debtors." The dispute is rooted in Daiichi Sankyo's attempts to enforce an international arbitral award stemming from its conflict with the Singh brothers over Ranbaxy Laboratories' stake sale in 2016. Fortis Healthcare, represented by prominent advocates, along with Daiichi Sankyo, made their respective arguments before the Supreme Court.

The court's decision maintains the Delhi High Court's directions, which involve scrutinizing transactions and financial activities pertinent to Daiichi Sankyo's efforts to trace assets connected to the award. This latest development is crucial for Daiichi Sankyo's ongoing pursuit of the arbitral award's benefits and could set a precedent for the enforcement of foreign arbitral awards concerning entities beyond the initial judgment debtors.