What is Cooking in the London High Court Over an Unpaid Loan Case Between Six Indian Banks and GVK Coal Developers
In a recent trial at the London High Court, GVK Partners Singapore has faced backlash from six Indian banks in the unpaid loan case. On October 10, the court ruled that Kartik Nayar, an Indian lawyer representing GVK, is not eligible to appear in court to make submissions on behalf of the defendants as he is not an English-qualified lawyer.
The Indian banks—Bank of Baroda, Bank of India, Canara Bank, ICICI Bank Limited, Indian Overseas Bank, and Axis Bank—represented by barrister Karishma Vora, instructed by Gautam Bhattacharyya and Akshay Sevak of Reed Smith, had accused GVK of changing legal representatives frequently.
The Case
GVK Coal Developers, a Singapore-incorporated company, had obtained loans from the six Indian banks in 2011 and 2014 to finance their Australian coal and infrastructure projects. They presented their subsidiaries, such as GVK Power and Infrastructure Limited, as guarantors. The banks sued the company in the London High Court in 2020 after the payments were due for several years.
However, considering GVK”s request to obtain proficient consultancy from an Indian law firm, the court adjourned the hearing in October 2022. GVK informed Justice Cockerill that they would be submitting an expert report prepared by Justice Vikramjit Sen, a former judge of the Supreme Court of India. A timetable for the evidence on Indian law was then set. The Indian banks, on the other hand, engaged Justice Suresh Gupte, a former judge of the Bombay High Court. Norton Rose Fulbright represented GVK.
What Happened When the Trial Began
Just before the trial was scheduled to begin, GVK parted ways with Norton Rose and informed the court that they were actively seeking new legal representation. On Tuesday, Kartik Nayar, an Indian lawyer, appeared in court as a representative of GVK to make submissions on behalf of the defendants. No other representatives or GVK officials were present in court or on the video link.
Judge Dame Clare Moulder refused permission to Nayar to address the court, noting that he is not an English-qualified lawyer. She also declined to adjourn the proceedings to allow GVK to engage a new legal team, stating that they could have done so earlier.
Krishnakumar Ramasubramanian of ICICI Bank, which has the largest exposure to the GVK loan and is the frontrunner in the legal proceedings, has recorded his evidence on the issue of quantum. Justice Gupte is ready to present their evidence via video link.
The trial was deferred in June 2022 at GVK”s request to obtain legal expert evidence on Indian law. However, ironically, the trial finally started, and only the Indian banks can nail it with proper evidence.
