New Delhi: Former Fortis Healthcare promoter Shivinder Mohan Singh has moved a plea before the National Company Law Tribunal for personal insolvency, stating that his liabilities far exceed his assets. Singh has filed the plea under Section 94 of the Insolvency and Bankruptcy Code (IBC) before the Delhi-based bench of the insolvency tribunal, according to lawyers associated with the matter.
The plea was listed before a two-member bench comprising Mahendra Khandelwal and Subrata Kumar Dash on Monday, which briefly heard the matter.
The bench has now posted the matter on May 20 for the next hearing.
Section 94 of the IBC allows a debtor to apply to the NCLT to initiate the insolvency resolution process. The debtor may apply either by himself, or jointly with Partners, or through a Resolution Professional to the NCLT for initiating an Insolvency Resolution Process under Section by submitting an application.
Debt-ridden Shivinder Mohan Singh faces over Rs 3,500 crore recovery in an arbitration from the Japanese drug maker Daiichi Sankyo.
In his plea, Singh has submitted that his liabilities now far exceed the value of available assets.
Most of his assets have either been attached or disposed of at significantly reduced value, primarily due to ongoing litigation and enforcement proceedings related to the Daiichi dispute, as well as financial mismanagement within RHC Holding Pvt. Ltd., where he was a corporate guarantor.
A Singapore-based arbitral tribunal on April 29, 2016, awarded Rs 3,500 crore in favour of the Japanese firm, directing the Singh brothers to pay.
Later, Daiichi Sankyo moved the Delhi High Court for its enforcement.
The Delhi High Court on January 31, 2018, upheld the Rs 3,500 crore arbitral award passed in favour of Daiichi and paved the way for the enforcement of the 2016 tribunal award against the brothers who had sold their shares in Ranbaxy to Daiichi in 2008 for Rs 9,576.1 crore.
Sun Pharmaceuticals Ltd had later acquired Ranbaxy from Daiichi.
