Delhi High Court Orders Auction of Fortis Trademark in Daiichi Sankyo Case

The Delhi High Court has ordered the auction of the Fortis trademark to recover a Rs 3,500 crore arbitral award in favor of Daiichi Sankyo and against the former Ranbaxy promoters. Despite past objections, the auction proceeds, with anticipated recovery around Rs 191.5 crore.

The Delhi High Court has ruled that the Fortis trademark will be auctioned as part of efforts to enforce a Rs 3,500 crore arbitral award in favor of Daiichi Sankyo. This comes after the Japanese pharmaceutical company sought the sale of the trademark owned by RHC Healthcare Management Services Pvt Ltd, a judgment debtor in the case.

This legal action stems from a 2016 Singapore arbitration tribunal decision, which awarded damages against former Fortis Healthcare promoters, Malvinder Mohan Singh and Shivinder Mohan Singh. Daiichi Sankyo claims that the debtors' shared liabilities now stand at approximately Rs 4,900 crore.

With the consent of parties involved, the court rejected calls for an auditor to assess the trademark's value before auction, expecting a recovery of nearly Rs 191.5 crore from the sale. The Joint Registrar (Judicial) is tasked with overseeing the auction process and reporting its outcome for final court approval.

(With inputs from agencies.)