The High Court of Delhi on Wednesday directed the status quo and also restrained third party rights on ‘SRL’ Trademark after the Japanese Company Daiichi Sankyo filed a petition to attach and sell the Trademark to recover the debt due from the Company. The next day of hearing of the case is posted for 28th July 2020.
The Trademark ‘SRL’ currently lies with a subsidiary firm Headway Brands Private Limited. The Hon’ble Delhi High Court noted that the Trademark was assigned to the subsidiary firm in December 2019. Daiichi seeks to recover the money from former Ranbaxy Promoters Malvinder Mohan Singh and Shivinder Mohan Singh. The brothers are currently serving their sentence in jail, for reported mismanagement of funds of Religare Finvest Ltd.
Earlier this month Daiichi had filed a petition to attach the trademark of Religare and Fortis. The High Court had then issued notice to the Singh Brothers and also ordered status quo to be maintained. Japanese Pharmaceutical is seeking to recover the arbitral award of Rs. 3500 crores. In 2019, Daiichi had filed a contempt plea for not disposing of their assets in accordance with the court order.
The duo brother is accused of concealing information regarding the malpractice in Ranbaxy while the Company was sold to Japanese Drug Pharma, with respect to this the Singapore Tribunal ordered the Arbitral award of Rs. 3500 crores. While selling its shares to Daiichi, Ranbaxy hid the information that they were facing an inquiry from the U.S. Food and Drug Administration as well as the Department of Justice. In 2018, the High Court upheld the arbitral award. However, it further said that the arbitral award is unenforceable to five minor shareholders because a minor cannot be held liable for fraud committed through their agent. Further, a plea was filed by the brothers before the Singapore Supreme Court to set aside an arbitral award. The Hon’ble Court dismissed this petition.
(This news has been written and submitted by Ms. Navya Sony during her course of internship at B&B Associates LLP. Ms. Navya is a final year law student of Symbiosis Law School, Pune.)