Reliance Communications Chairman Anil Ambani (Photo: Bloomberg)
Reliance Communications Chairman Anil Ambani (Photo: Bloomberg)

UK High Court dismisses Chinese banks' $680-mn claim against Anil Ambani

  • UK High Court has dismissed the banks' claim over corporate loans given to Reliance Communications
  • The hearing in the matter took place on 7 November and the order was issued on Monday

New Delhi: UK High Court has dismissed a $680 million claim application filed by Chinese banks against Reliance Communications Chairman Anil Ambani, a spokesperson of Ambani said on Moday.

The hearing in the matter took place on 7 November and the order was issued on Monday, the spokesperson said in a statement.

UK High Court has dismissed "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 Reliance Communications Limited (RCom)", it said.

"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 spokesperson said.

At this stage of the proceedings, the evidence of the personnel of RCom who were dealing with the personnel of the Chinese banks could not be placed, which led to certain doubts being expressed in the judgement on account of the evidence being incomplete and thus appearing implausible.

Ambani contested the proceedings and put up a strong legal defence, and 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.

"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 Chinese banks claim are without any merit," the statement said.

The spokesperson said that Ambani is confident that his position would be fully vindicated once all the facts and the entire evidence is before the Court.

RCom is currently undergoing through 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 33,000 crore. Lenders have submitted claims of around 49,000 crore in August.

Bharti Airtel, Reliance Jio, Varde Capital and UV Asset Reconstruction Company have submitted bids to buy assets of debt-ridden Reliance Communications.

Reliance Group companies have sued HT Media Ltd, Mint’s publisher, and nine others in the Bombay high court over a 2 October 2014 front-page story that they have disputed. HT Media is contesting the case.

This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.

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