High Court of London has made judgment in favour of IDBI Bank worth USD 239 million, against Essar Shipping Group, a Cypriot Subsidiary of India.
IDBI Mumbai had entered into loans totalling USD 148 million with two Singapore registered companies Varada Drilling One PVT. LTD. and Varied Drilling Two PVT. LTD. for the construction of two jack up drilling rigs in March 2013. IDH International Drilling Holdco Ltd, the Cypriot registered parent company of borrower was the guarantor in respect of loan.
As per the law firms, in July 2017, IDBI served a demand for repayment of the principle amount, contractual interest, defaults interest and fees after when the borrower failed make scheduled repayments.
Afterward, IDBI, IDH and Essar Capital Holdings limited entered into one time settlement under which IDBI agreed to accept a partial payment in full and final settlement of debt, to be paid till 28th February, 2021. However, no such payment was made by defaulters and IDBI proceeded further on 1stMarch 2021. The Case was heard in Commercial Court on 21stMay, 2021.