IDBI Bank secures $239 million debt judgment in UK – Times of India

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IDBI Bank has secured a $239-million judgment in the business division of the High Court of London in opposition to a Cypriot subsidiary of India-based Essar Shipping Group, amongst one of the biggest debt judgments obtained by an Indian financial institution in the English courts.
IDH International Drilling Holdco (IDH), the Cypriot-registered dad or mum firm of the debtors, is disenchanted with the judgment and is contemplating its place with regard to an attraction of this judgment, a spokesman for the Essar Group mentioned. Mumbaiheadquartered IDBI had entered into loans totalling $148 million with two Singapore registered firms Varada Drilling One and Varada Drilling Two for the development of two jack up drilling rigs in March 2013.
IDH gave a company assure in respect of the mortgage. The mortgage and assure have been ruled by English regulation and have been due to this fact 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 compensation of the principal quantity, contractual curiosity, default curiosity and costs. After additional non-fee, the debtors entered liquidation in Singapore and, in January 2020, TLT commenced proceedings in the UK on behalf of IDBI.
Subsequently, IDBI, IDH and Essar Capital Holdings, one other Essar Shipping Group firm, entered right into a “one time settlement” settlement pursuant to which IDBI agreed to simply accept a partial fee in full and ultimate 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 in the Commercial Court on May 21 by Deputy High Court Judge Leigh-Ann Mulcahy QC.



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