UK High Court to set terms in Chinese banks’ claim against Anil Ambani

Ambani denies providing authority for any such guarantee, resulting in the High Court action in the UK – the jurisdiction agreed to as part of the terms of the loan agreement

The High Court of England and Wales here on Friday will set the terms for the “conditional order” of a payment into court it had granted to three Chinese banks last year against Reliance Communications boss Anil Ambani. The Industrial and Commercial Bank of China Ltd Mumbai Branch, on behalf of itself, China Development Bank and Exim Bank of China, had sought summary judgment against Ambani over an alleged breach of a personal guarantee on a debt refinancing loan of around $925 million in February 2012.

Ambani denies providing authority for any such guarantee, resulting in the High Court action in the UK – the jurisdiction agreed to as part of the terms of the loan agreement. At the last hearing in the case in December last year, Justice David Waksman said he was “very nearly prepared” to grant judgment against Ambani because he found the Reliance Communications (RCom) chief’s evidence “inexplicably incomplete, implausible and highly unlikely”.

“I think it is highly probable that at trial his defence will be shown to be opportunistic and false… I consider that this is a plain case for the making of a conditional order,” Justice Waksman said, as he granted a conditional order in principle to the Chinese banks. The order means the Commercial Division of the High Court will hear arguments this week on Ambani’s financial means and set an appropriate amount as an effective court deposit, pending a full trial in the case…