IDBI Bank has secured a $ 239 million judgment within the industrial division of the High Court of London in opposition to a Cypriot subsidiary of India-based Essar Shipping Group, believed to be one of many largest debt judgments obtained by an Indian financial institution within the English courts. Mumbai-headquartered IDBI had entered into loans totalling $ 148 million with two Singapore registered firms — Varada Drilling One Pte Ltd and Varada Drilling Two Pte Ltd — for the development of two jack up drilling rigs in March 2013.
IDH International Drilling Holdco Ltd (IDH), the Cypriot-registered mum or dad firm of the debtors, gave a company assure in respect of the mortgage. The mortgage and assure had been ruled by English legal guidelines and had been subsequently topic to the jurisdiction of the English courts.
“This is an important judgment both in terms of its size and the message it sends to defaulters that Indian banks are willing and able to recover outstanding debts through the English courts,” mentioned Nick Curling, authorized director at TLT LLP, the London regulation agency representing IDBI.
According to the regulation agency, in July 2017, after the debtors didn’t make scheduled repayments, IDBI served a proper demand for reimbursement of the principal quantity, contractual curiosity, default curiosity and charges. After additional non-payment, the debtors entered liquidation in Singapore and, in January 2020, TLT commenced proceedings within the UK on behalf of IDBI.
Subsequently, IDBI, IDH and Essar Capital Holdings Limited, one other Essar Shipping Group firm, entered right into a “one time settlement” settlement pursuant to which IDBI agreed to just accept a partial fee in full and closing settlement of the debt, supplied the sum was paid on or earlier than February 28 this 12 months.
No such fee was acquired and, on March 1, IDBI utilized for abstract judgment, arguing there was no actual prospect of IDH efficiently defending the declare at trial. The case was heard within the Commercial Court on May 21 by Deputy High Court Judge Leigh-Ann Mulcahy QC.
There was no rapid assertion from the Essar Group. The TLT crew, which additionally included Indian banking litigation specialists Paul Gair (companion) and Alex Morris (solicitor), mentioned the case demonstrates the flexibility of Indian banks to pursue defaulting debtors and guarantors within the UK.
The regulation agency can also be presently representing a consortium of 13 Indian banks led by the State Bank of India in implementing a 1.145 billion kilos debt restoration judgment in opposition to Vijay Mallya, 65, the previous boss of now defunct Kingfisher Airlines. Mallya, an accused in a financial institution mortgage default case of over Rs 9,000 crore, has been within the UK since March 2016