Calcutta High Court Approves Landmark Settlement in Glocal Healthcare and UpHealth Dispute

The Calcutta High Court has sanctioned a pivotal settlement between Glocal Healthcare Systems Pvt Ltd, a leader in affordable and digital healthcare in India, and US-based UpHealth Holdings Inc. This resolution concludes extensive, cross-border litigation involving millions of dollars.

Following a concurrent decision by the US Bankruptcy Court for the District of Delaware, where UpHealth is engaged in bankruptcy proceedings, the settlement grants the Glocal parties a $37.5 million claim from UpHealth Inc.'s liquidation. Glocal will reciprocate with a $10 million payment to acquire the remaining equity held by UpHealth, resulting in a net gain of $27.5 million. Importantly, the settlement nullifies a $110 million arbitral award previously issued in favor of UpHealth against Glocal, and relinquishes all claims UpHealth held on Glocal's assets, shares, and intellectual property, enabling complete disengagement and independent pursuits for both parties.

In a notable turnabout, this agreement concludes disputes that reached courts in India and the US after a March 2024 ICC tribunal awarded $110 million to UpHealth. Glocal contested the award's enforceability, alleging statutory violations in adjudicating shareholder disputes and citing the tribunal's status as functus officio, having exceeded its time limit by 400 days. This settlement is seen as a significant victory for Glocal and its founder, Dr. Syed Sabahat Azim, with the Calcutta High Court lauding the legal teams for their role in finalizing the agreement.