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NCLT dismisses HDFC Ltd's insolvency petition against RHC Holding

RHC Holding had contended in this matter that it is a non-banking finance company and thus it could not be brought under IBC code

Press Trust of India  |  New Delhi 

Shivinder and Malvinder
RHC Holding is promoted by Singh Brothers -- Malvinder Mohan Singh and Shivinder Mohan Singh

Law Tribunal (NCLT) Thursday dismissed the plea of Ltd to initiate proceedings against RHC Holding, a company promoted by Singh Brothers -- Singh and Singh.

A two-member principal bench headed by NCLT Justice M M Kumar dismissed the plea of Ltd, which had moved the tribunal to recover Rs 410 million.

had contended in this matter that it is a company and thus it could not be brought under IBC code.

Earlier in this matter, Japanese drug had moved NCLT to stay the proceedings against

had said they have a decree to recover money against

The has already granted a status quo over sale of assets by RHC Holding.

A tribunal in had passed the award in favour of Daiichi holding that the Singh brothers had concealed information that Indian company was facing probe by the and the Department of Justice, while selling its shares.

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The high court on January 31 had upheld the international arbitral award passed in the favour of Daiichi and paved the way for enforcement of the 2016 tribunal award against the brothers who had sold their shares in to Daiichi in 2008 for Rs 95.76 billion. had later acquired from Daiichi.

It had, however, said that the award was not enforceable against five minors, who were also shareholders in Ranbaxy, saying they cannot be held guilty of having perpetuated a fraud either themselves or through any agent.

Daiichi had moved the high court seeking direction to the brothers to take steps towards paying its Rs 35 billion arbitration award, including depositing the amount. It had also urged the court to attach their assets, which may be used to recover the award.

First Published: Thu, December 06 2018. 16:10 IST
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