The judgment, delivered on October 19 by Judge Dame Clare Moulder at the Commercial Court division, favored the banks, represented by the international law firm Reed Smith….reports Asian Lite News
Six Indian banks have claimed a legal victory in London’s High Court against GVK Coal Developers (Singapore) Pte Ltd and its associated companies for an outstanding loan totalling approximately $2 billion, including accrued interest.
The judgment, delivered on October 19 by Judge Dame Clare Moulder at the Commercial Court division, favored the banks, represented by the international law firm Reed Smith.
The banks—led by Bank of Baroda and including Canara Bank, ICICI Bank Ltd, Indian Overseas Bank, and Axis Bank Ltd—argued that loan facilities provided to GVK Coal Developers in 2011 and 2014 remained unpaid and long overdue. The court considered evidence presented by the banks, noting the absence of representation from GVK during the trial. Additionally, the court declined permission for an Indian lawyer to address the proceedings after an adjournment application from GVK was rejected.
The judgment highlighted the absence of repayment concerning the Facility Agreements and referenced the principles of Indian law, particularly regarding force majeure, supported by Mr. Justice Gupte’s report. The judgment also indicated that the Government of India had not declared force majeure in a manner applicable to these contracts.
The entities involved in the case, beyond GVK Coal Developers, include several other GVK group companies primarily based in Singapore, with a couple from Telangana. The loans were intended to support the acquisition and development of coal mines along with associated rail and port infrastructure.
The case, pursued by the banks since 2020 in London’s High Court, culminated in a significant legal win. The GVK Group has been contacted for their response to the judgment. This victory marks a crucial milestone for the Indian banking institutions involved and their pursuit of justice both nationally and internationally.