THE UK high court has rejected a £509 million or $680m claim petition filed by Chinese lenders against an Indian business tycoon.
The court hearing on the petition was held last month. However, the ruling was passed on Monday (16), favouring the debt-ridden Indian business Reliance Communications (RCom) Chairman Anil Ambani.
A spokesperson for the Indian company said the UK high court has rejected "summary judgement application of Chinese banks against Anil Ambani" in which the "Chinese banks had claimed $680 million from Mr Ambani against Chinese banks’ corporate loans to RCom".
"Mr Ambani's position that the claim made by Chinese banks in relation to his alleged guarantee for corporate loans availed by Reliance Communications Limited (RCom) could not be granted by way of a summary judgement has been duly upheld by the UK high court”.
The evidence of the personnel of RCom who were dealing with the personnel of the Chinese banks could not be placed.
The failure led to some of the doubts being expressed in the judgement on account of the evidence being incomplete and thus appearing unconvincing.
Ambani contested the proceedings and put up a strong legal defence.
According to Ambani’s company, he will continue to contest the proceedings and seek leave to defend, without any conditions as to making of deposits or payments being imposed, the statement said.
The spokesperson noted that the younger brother of Indian business tycoon Mukesh Ambani is confident that his position would be fully vindicated once all the facts and the entire evidence is before the court.
The statement further said, "Mr Ambani is confident that he will have an opportunity to place the necessary evidence before the UK high court, in the course of the trial to establish that the Chinese banks' claims are without any merit.”
RCom is currently undergoing insolvency proceedings following a plea filed by Swedish telecom gear maker Ericsson after the company failed to clear its dues.
RCom's secured debt is estimated to be around Rs 330 billion or £3.49bn.
Lenders have submitted claims of around Rs 490bn or £5.18bn in August.
Indian telecommunication companies, including Bharti Airtel, Reliance Jio and UV Asset Reconstruction Company, have filed their bids to purchase the properties of debt-ridden RCom.
