Supreme Court disposes of SLP; forensic audit to proceed with observations termed tentative

The Supreme Court, by order dated 25 September 2026, disposed of the company's SLP against the Delhi High Court's 31 August 2026 judgment in the Daiichi Sankyo vs Malvinder Mohan Singh matter.

Sun 27 Sep 2026

Supreme Court Order Date

25 September 2026

Delhi High Court Judgment Date

31 August 2026

Case Name

Daiichi Sankyo Company, Limited vs Malvinder Mohan Singh & Ors

Outcome

Forensic audit allowed to proceed; observations termed tentative and independent of audit

Company Liability Status

No liability, penalty or fine imposed by High Court

What the Court ordered

The Supreme Court, by its order dated 25 September 2026, disposed of the Special Leave Petition shared by the company against the Delhi High Court order dated 31 August 2026 in Daiichi Sankyo Company, Limited vs Malvinder Mohan Singh & Ors.

The SLP had challenged the direction for a forensic audit relating to the company, and certain observations in that judgment concerning the company.

The Supreme Court allowed the forensic audit to proceed. It clarified that various paragraphs of the judgment containing the challenged observations are "tentative and only for the purpose of making out a case for forensic audit", and that "the forensic audit shall be conducted independently, without being influenced by the abovementioned observations."

Company's position

• The company says the Delhi High Court has not imposed any liability, penalty or fine on it.
• It states it is a stranger to the underlying dispute between Daiichi Sankyo and the Singh Brothers, was never a party to the arbitration, and is neither a judgment debtor nor a garnishee.
• As a listed company it had no ability to control share transfers by erstwhile promoters and received no monies from the dissipation of their shareholding.
• After the Singh Brothers' shareholding fell below 1% and they resigned from the Board by March 2018, institutional shareholders appointed independent directors.
• In June 2018 the independent Board ran a competitive bidding process to induct a new investor.
• The investment by promoter shareholder Northern TK Venture Pte. Ltd. (IHH Healthcare Berhad group) in November 2018 was via a fresh issuance of equity shares after approvals from CCI, SEBI, the stock exchanges and shareholders, and involved no transfer of shares from the Singh Brothers.

What it means for investors

The legal process around the forensic audit continues, so this matter is not yet closed. At the same time, the order records that the adverse observations are tentative and must not influence the audit, and the company reiterates that no monetary liability has been fixed on it. The date and time of occurrence of the event is stated as 26 September 2026 at 12:39 PM (IST).

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