IDBI Bank has secured a $239-million judgment in the commercial division of the High Court of London against a Cypriot subsidiary of India-based Essar Shipping Group, among one of the largest debt judgments obtained by an Indian bank in the English courts.
IDH International Drilling Holdco (IDH), the Cypriot-registered parent company of the borrowers, is disappointed with the judgment and is considering its position with regard to an appeal of this judgment, a spokesman for the Essar Group said. Mumbaiheadquartered IDBI had entered into loans totalling $148 million with two Singapore registered companies Varada Drilling One and Varada Drilling Two for the construction of two jack up drilling rigs in March 2013.
IDH gave a corporate guarantee in respect of the loan. The loan and guarantee were governed by English law and were therefore subject 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,”…
IDH International Drilling Holdco (IDH), the Cypriot-registered parent company of the borrowers, is disappointed with the judgment and is considering its position with regard to an appeal of this judgment, a spokesman for the Essar Group said. Mumbaiheadquartered IDBI had entered into loans totalling $148 million with two Singapore registered companies Varada Drilling One and Varada Drilling Two for the construction of two jack up drilling rigs in March 2013.
IDH gave a corporate guarantee in respect of the loan. The loan and guarantee were governed by English law and were therefore subject 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,”…
