- Bookmark
- Share
- CaseIQ
Daiichi Sankyo Company Limited Petitioner(s) v. Oscar Investments Limited And Others (s).
Factual and Procedural Background
On 15 November 2019 the Supreme Court delivered judgment in Contempt Petition (Civil) No. 2120/2018, holding a number of corporate directors—principally of Indiabulls Housing Finance Ltd. (IHFL), Indiabulls Ventures Ltd. (IVL), Oscar Investments Ltd., RHC Holding Pvt. Ltd., and Fortis Healthcare Ltd.—prima facie guilty of wilful disobedience of earlier court orders dated 11 August 2017, 31 August 2017, 15 February 2018 and 23 February 2018. Specific directions (labelled (i)–(iv)) were issued, granting each set of contemnors an opportunity to “purge” the contempt by depositing specified sums within eight weeks.
The present order records compliance, partial compliance, and continuing non-compliance with those directions, rules on several interlocutory applications, and fixes a further hearing for 16 March 2020.
Legal Issues Presented
- Whether Contemnor Nos. 1–8 (directors of IHFL and IVL) have satisfactorily purged themselves of contempt by depositing the monetary value of 12,25,000 shares and tendering an apology.
- Whether Contemnor Nos. 9, 10, 12 and 13 (Malvinder Mohan Singh & Shivinder Mohan Singh) have adequately purged themselves of contempt, and if not, what further steps are required.
- Procedural management of the suo motu contempt proceedings initiated against RHC Holding Pvt. Ltd., Oscar Investments Ltd., Fortis Healthcare Ltd. and the Singh brothers for alleged violation of the order dated 14 December 2018.
- Disposition of various interlocutory applications seeking impleadment, intervention, filing of additional documents, and relief by an independent shareholder of Fortis Healthcare Ltd.
Arguments of the Parties
The opinion does not contain a detailed account of the parties' legal arguments.
Table of Precedents Cited
No precedents were cited in the provided opinion.
Court's Reasoning and Analysis
Compliance with Direction No. 1: The Court noted that Contemnor Nos. 1–8 have deposited ₹17,93,40,000 and filed personal affidavits tendering apology. Finding this sufficient, it ruled that these contemnors have purged the contempt and “closed the matter as against them.” The deposited amount is to be kept in an interest-bearing fixed deposit for one year.
Progress on Direction No. 2: Malvinder Mohan Singh and Shivinder Mohan Singh were produced from judicial custody. The Court found Shivinder’s affidavit unsatisfactory and granted both contemnors time until 5 March 2020 to file “fresh proposals” detailing how they intend to purge the contempt. Limited permissions were granted for the contemnors to meet family members within court premises and to confer with specified counsel while in jail.
Direction No. 3: Deferred for consideration on the next date of hearing.
Direction No. 4 (Suo Motu Contempt): Fortis Healthcare Ltd. filed its reply; the Court directed that copies be served on all parties and allowed other alleged contemnors time to file their responses. All pleadings are to be completed before 16 March 2020.
Interlocutory Applications:
- IA 13399/2020 (impleadment) and IA 61075/2019 (intervention) were allowed and disposed of.
- IA D. 61086/2019: four weeks granted for filing reply.
- IA D. 19021/2019: additional documents taken on record.
- IA 18216/2020: notice issued; to be considered on the next date.
- IA D. 8254, 8243, 8239/2020 (independent shareholder of FHL): replies due within four weeks.
- IA D. 13394/2020: replies due by 5 March 2020.
Collectively, these directions show the Court’s incremental approach: confirming compliance where achieved, insisting on concrete proposals where outstanding, and ensuring procedural fairness by allowing pleadings and interventions.
Holding and Implications
Holding:
- Contemnor Nos. 1–8 have purged themselves of contempt; proceedings against them are closed.
- Contemnor Nos. 9, 10, 12 and 13 must submit detailed proposals by 5 March 2020 to purge contempt; matter is adjourned to 16 March 2020.
- Multiple interlocutory applications were disposed of or scheduled for further hearing as outlined above.
Implications: The decision brings finality for the Indiabulls directors but keeps the contempt proceedings alive against the Singh brothers and corporate entities connected to them. No new legal precedent was established; the order primarily advances enforcement of earlier directives and sets procedural timelines for full compliance by remaining contemnors.
1. On 15.11.2019, we had passed judgment in Contempt Petition (C) No. 2120/2018 and the following directions were issued.
“51. In view of the above discussion, we, dispose of this contempt petition in the following terms:—
(i) We find Sameer Gehlaut, Director of Indiabulls Housing Finance Limited and Director of Indiabulls Ventures Limited (Contemnor Nos. 1 & 5), Gagan Banga, Director of Indiabulls Housing Finance Limited and Director of Indiabulls Ventures Limited (Contemnor Nos. 2 & 6), Ashwini Kumar Hooda, Director of Indiabulls Housing Finance Limited (Contemnor No. 3), Sachin Chaudhary, Director of Indiabulls Housing Finance Limited (Contemnor No. 4), Divyesh Bharat Kumar Shah, Director of Indiabulls Ventures Limited (Contemnor No. 7) and Pinank Jayant Shah, Director of Indiabulls Ventures Limited (Contemnor No. 8), who are active directors of IHFL and IVL of knowingly and wilfully disobeying the orders of this Court dated 11.08.2017, 31.08.2017 and 15.02.2018 as continued on 23.02.2018 and find them guilty of committing contempt of this Court. We will hear them on the question of sentence. We afford an opportunity to contemnor nos. 1-8 to purge themselves of the contempt by depositing the value of 12,25,000 shares as on 31.08.2017 in the Bombay Stock Exchange within eight weeks from today. In case, the said respondents purge themselves of the contempt, we may take a lenient view while imposing sentence.
(ii) Malvinder Mohan Singh, Director of Oscar Investments Limited and Director of RHC Holding Private Limited (Contemnor Nos. 9 and 12) and Shivinder Mohan Singh, Director of Oscar Investments Limited and Director of RHC Holding Private Limited (Contemnor Nos. 10 and 13) have knowingly and wilfully violated the orders of this Court dated 11.08.2017, 31.08.2017 and 15.02.2018 as continued on 23.02.2018. Therefore, we hold both of them guilty of committing Contempt of this Court. We give one chance to them to purge themselves of the contempt. We, direct that in case each of the contemnors deposits a sum of Rs. 1170.95 crores in this Court within eight weeks from today then we may consider dealing with them in a lenient manner, while imposing sentence.
(iii) In case any of the contemnors deposits the amount as directed hereinabove, this Court shall decide on the next date as to how this amount is to be disbursed.
(iv) The Registry is directed to register a suo motu contempt petition against RHC Holding Private Limited, Oscar Investments Limited, Malvinder Mohan Singh, Shivinder Mohan Singh and Fortis Healthcare Limited, for having wilfully violated the order of this Court dated 14.12.2018 and issue notice to them returnable for 03.02.2020 asking them to show cause why they should not be punished for contempt.”
Direction No. 1:
2. As far as direction No. 1 is concerned, the Contemnors, who were subject-matter of those directions have deposited an amount of Rs. 17,93,40,000/- and on 18.12.2019 we had passed another order. The relevant portion reads as follows:
“Keeping in view of the earlier order and facts that the Contemnors have not only deposited this amount but also filed the personal affidavit tendering apology, we hold that they have purged themselves of the contempt and we close the matter as against them.”
3. The amount of money so deposited shall be kept in an interest bearing FD initially for a period of one year.
Direction No. 2:
4. Both contemnors Malvinder Mohan Singh and Shivinder Mohan Singh are present in Court and they have been brought from judicial custody as they are in jail in respect of some other case. On the oral request made by learned Counsel for Malvinder Mohan Singh and Shivinder Mohan Singh, we direct Naresh Kumar, ASI who has brought them to this Court to ensure that both the detenus are permitted to meet their family members till 2.00 P.M., within the Supreme Court premises.
5. Shivinder Mohan Singh has filed an affidavit. We are not fully satisfied with the same. Ms. Meenakshi Arora, learned Senior Counsel, prays for some time to file a more detailed affidavit. Malvinder Mohan Singh and Shivinder Mohan Singh are directed to file fresh proposals as to how they want to purge themselves of the contempt. They may file an appropriate application as to how they would like to discharge their liability which is the subject-matter of the contempt petition, positively by 05.03.2020 with advance copies to all the parties and the matter be listed before the Court on 16.03.2020.
6. We also direct the jail authorities to ensure that Malvinder Mohan Singh can meet Ms. Vijaylakshmi Menon, Adv. and Ms. Anuradha Dutt, Adv. (DMD Advocates) 30, Nizamuddin East, New Delhi-110013 and Shivinder Mohan Singh, be permitted to meet Mr. Vivek Jain, Adv. 606-B, Adiswar Apartments, 34, Ferozshah Road, New Delhi - 110 001 for four hours on two occasions between this period and they will escort them to the offices of the counsel.
Direction No. 3: Shall be considered on the next date.
Direction No. 4:
Suo Motu Contempt Petition (Civil) No. 4 of 2019
7. Fortis Healthcare Limited (FHL) has filed reply to the suo motu contempt petition. We request the learned counsel for FHL to supply copies of the replies to M/s. Daiichi Sankyo Company Limited and also to Malvinder Mohan Singh and Shivinder Mohan Singh. Other alleged contemnors may file before the next date.
8. Learned counsel for the parties are requested to exchange the complete pleadings before the next date of hearing i.e. 16.03.2020.
IA D. No. 13394/2020:
9. Learned counsel for the contesting parties may file reply before 05.03.2020.
10. List on 16.03.2020.
IA No. 13399/2020:
11. Application for impleadment is allowed.
12. IA is disposed of.
IA No. 61075/2019:
13. Application for intervention is allowed.
14. IA is disposed of.
IA No. D. 61086/2019:
15. Learned counsel is permitted to file reply within four weeks.
16. List on 16.03.2020.
IA No. D. 19021/2019:
17. Application placing on record additional documents is allowed.
18. IA is disposed of.
IA No. 18216/2020:
19. Issue notice for application for impleadment. This application shall also be considered on the next date.
IA D. No. 8254, 8243, 8239/2020
20. These applications are filed on behalf of an independent shareholder of FHL.
21. Learned counsel for the contesting parties may file reply within four weeks.
22. List on 16.03.2020
23. List the matters on 16.03.2020.
Alert