E-Paper
New UK ruling on PNB debt recovery stayed
The case involves two loans PNB extended between 2012 and 2013 to defendants that include businessman Pradeep Agrawal of Superior Drinks Pvt Ltd. and the non-payment of loans to purchase and operate a cruise liner, MV Delphin.
A judgement of the high court of England and Wales in favour of the Punjab National Bank’s international branch in a $22 million recovery case has been stayed and India-based defendants have applied to appeal against it.
The case involves two loans PNB extended between 2012 and 2013 to defendants that include businessman Pradeep Agrawal of Superior Drinks Pvt Ltd. and the non-payment of loans to purchase and operate a cruise liner, MV Delphin.
The PNB’s subsidiary in London operates under English law. The defendants accepted they entered into various guarantees but challenged the jurisdiction of the English court to hear the bank’s claim and also raised technicalities about notices served in India.
After a recent two-day hearing, conducted remotely due to the coronavirus pandemic, Justice Sara Cockerill rejected the defendants’ arguments put forth by solicitor Karishma Vora, who came in for praise in the judgement.
“In conclusion, although Ms Vora for the Applicants has done an excellent job of marshalling and presenting her many and various points, the challenges brought are a collection of issues, all of which lack merit. I therefore dismiss the applications”, the judge said.
On the point of whether a certificate of good service from a foreign (in this case Indian) judicial authority can be valid service of English judicial proceedings, Cockerill also found that there is a strong presumption of service and that a claimant need not look beyond the certificate.
Paul Gair of law firm TLT that represented PNB, said: “This is a significant victory for PNBIL as it means it can now pursue its enforcement action against the defendants in the English courts”.
TLT is currently advising a consortium of 13 Indian banks on a £1.05 billion debt recovery action in the UK against controversial businessman Vijay Mallya.
