The case by the UK subsidiary of PNB is seen as a landmark
decision for similar cases involving wilful defaulters who are residing in or
have assets in the UK
Punjab
National Bank International Limited (PNBIL) has logged a big win in a UK
High Court in its pursuit of around $22 million in unpaid loans, setting a
precedent for other enforcement cases brought by Indian banks against promoters
or guarantors in English courts.
The case by the UK subsidiary of PNB is seen as a landmark decision for similar
cases involving wilful defaulters who are residing in or have assets in the UK,
or where the finance agreements are subject to English law and jurisdiction.
However, legal
experts stressed that there is no direct link between the outcome of this case
and that being pursued by a consortium of 13 Indian banks, led by the State
Bank of India (SBI), against liquor tycoon Vijay Mallya in the High Court
over unpaid loans to the now-defunct Kingfisher Airlines.
The PNBIL action
seeking enforcement through the UK High Court dates back to 2012 and 2013, when
it lent money in relation to the purchase and charter of the cruise liner MV
Delphin.
The purchaser was
Vishal Cruises Ltd, which was said to be supported by guarantees and/or
indemnities by businessman Pradeep Agrawal, chairman of Superior Drinks Pvt Ltd
and manufacturer Coca-Cola of beverages in India, and Superior Industries
Limited (SIL), also said to be associated with Agrawal.
At a two-day
hearing in the commercial division of the High Court in London last month, held
remotely due to the coronavirus lockdown restrictions, Justice Sara Cockerill
concluded that the case did have jurisdiction in the UK and ordered an interim
payment towards the bank's costs of GBP 70,000.
No comments:
Post a Comment