Daiichi vs Singh Brothers: Delhi HC orders status quo on SRL Diagnostics trademark sale

Delhi High Court on Wednesday ordered status quo with respect to SRL diagnostics trademark and restrained creating any third-party rights after Japanese drug maker filed a plea seeking to attach and sell trademarks of SRL. The next date of hearing is July 28.Earlier on June 24 Daiichi had sought for attachment sale of trademarks of Religare and Fortis too. The court had then issued notices to former Ranbaxy promoters Malvinder and Shivinder Singh and directed that status quo be maintained with regard to the trademarks.It was submitted that Daiichi wanted the trademark so that it could be sold and the amount be used for the payment of dues. The court was also informed that the trademark is currently with a subsidiary firm. Daiichi is seeking payment of an arbitral award of Rs 3500. In March 2019, the Japanese firm had filed a contempt plea against the Singh brothers for disposing of their assets in violation of the court order. Daiichi Sankyo had alleged that the execution of the arbitrary award of Rs 3,500 crore was in jeopardy as the promoters disposed of their controlling stakes in Fortis Group.Former Ranbaxy promoters Malvinder Singh and Shivinder Singh are accused of concealing information regarding wrongdoing at Ranbaxy when they sold a majority stake in it to the Japanese firm in 2008. The Singapore tribunal had in 2016 awarded Daiichi Rs 3500 crore in damages.The Delhi High Court today recorded that the trademark for SRL Diagnostics is held by a company named Headway Brands Private Limited. The High Court noted that the trademark was assigned to Headway Brands in December of 2019.The court recorded that the holding company of Singh Brothers enjoys a 99.9 percent stake in Headway Brands. The HC directed that status quo to be maintained with respect to the shareholding of Headway Brands.In May this year a Singapore Supreme court had dismissed Singh borthers’ appeal against the order of the Singapore High court which had earlier refused to set aside the arbitration award in favour of Japanese drug firm Daiichi Sankyo Inc. This meant that the Singh brothers could now no more delay payment of Rs 3500 crore to Daiichi Sankyo.The Singh brothers who are at present in judicial custody are also facing contempt proceedings in the Supreme Court of India.