The recent ruling by the UK court, favouring Reliance Communications (RCom) , a High Court in the United Kingdom dismissed summary judgement applications filed by clutch of Chinese banks claiming $680 million.
The Chinese banks – China Development Bank, Mumbai branch of Industrial and Commercial Bank of China and Exim Bank of China – had demanded the amount in lieu of corporate loans provided to Reliance Communications (RCom). The order was issued on Monday, while the hearing had happened on November 7.
“Anil Ambani is pleased with the dismissal of the summary judgment application filed by the Chinese banks before the UK High Court,” a spokesperson for Ambani said. Ambani’s position that the claim made by Chinese banks in relation to his alleged guarantee for corporate loans availed by RCom could not be granted by way of a summary judgement has been duly upheld by the UK High Court, he said.
The banks had provided total loans of $925.2 million to RCom in 2012 on a condition that Ambani will provide personal guarantees. While RCom repaid certain amount, the telecom operator began defaulting on payments from February 2017.
The Chinese banks in a joint statement said: “We welcome the grant of a conditional order against Anil Ambani as we have always said his defence is not credible. This is a straightforward debt claim to recover outstanding loans made to RCom in good faith and secured by a binding personal guarantee given by Ambani. We now look forward to the swift resolution of the case at trial.
RCom Chairman, who had contested the proceedings stating there were no “personal guarantees”, will continue to contest the proceedings, he added.