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The Court of Appeal in London recently declined the second appeal filed by Punjab National Bank (International) Limited against a United Kingdom High Court ruling dismissing its claim of having been defrauded by borrowers in the renewable energy sector based in India and the United States.
The order passed on May 1 by Lord Justice Floyd states,
Lord Justice Floyd’s decision to refuse permission to appeal has effectively brought to an end the two-year legal battle.
Punjab National Bank (International) Limited is a wholly-owned British subsidiary of the Punjab National Bank (PNB).
PNB had claimed that it had been misled and defrauded by the actions of the defendants following the grant of loans amounting to USD $45 million. The bank also alleged that money had been siphoned off and payments due had not been made under the loan facilities and guarantees.
This claim was eventually dismissed, after a UK Court found that proceedings over the dispute were already pending before a Debt Recovery Tribunal in Chennai.
A plea seeking to challenging this ruling in appeal has now been rejected, with the Court of Appeal holding that,
"An appeal against it would have no real prospect of success."
The defendants were represented by a team from Zaiwalla & Co, headed by Senior Partner Sarosh Zaiwalla, along with Senior Solicitor Rohit Ralleigh and Solicitor Robert Maxwell Marsh.
Commenting on the order in a press release, Sarosh Zaiwalla said,
"The case serves as a message to Banks that the English Courts will take a very dim view of a ‘lack of candour’ with the Court, if they are seeking an Order in the absence of the defendant and claiming that the English Courts are the correct place to deal with a claim.”