Bank of Baroda & Ors v GVK & Ors

Bank of Baroda & Ors v GVK & Ors

The Claimants established their entitlement to recover the principal, interest, and fees under the 2011 and 2014 Facility Agreements. The agreements were governed by English law, not Indian law. The RBI moratorium did not apply to these non-performing assets and was not accepted by the Defendants. No force majeure or implied terms suspended or barred enforcement. The acceleration and guarantee demands were valid (with minor timing caveats), and the quantum of sums due was proved to the requisite standard. Judgment is entered for the Claimants for the full amounts claimed.

Parties
Claimants: Bank of Baroda and others; Defendants: GVK and others
Jurisdiction
England and Wales
Judgment Date
11 October 2024
Procedural Posture
Commercial Claim (loan Recovery) / Final Judgment After Trial (defendants Absent)
Outcome
Judgment for the Claimants
Legal Topics
Loan Facility Agreements, Guarantees and Indemnities, Default and Acceleration, Implied Terms, Force Majeure, Moratorium (rbi Circulars), Governing Law, Interest Calculation, Limitation of Actions
Banking and Finance Contract Law Private International Law Loan Facility Agreements Guarantees and Indemnities Default and Acceleration Implied Terms Force Majeure +4 more

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Parties

Bank of Baroda and others

Claimants

GVK and others

Defendants

Procedural Posture

Commercial Claim (loan Recovery) / Final Judgment After Trial (defendants Absent)

Legal Issues

  1. 1 Whether the acceleration notices under the facility agreements were valid
  2. 2 Whether the Reserve Bank of India (RBI) COVID-19 moratorium applied to the Claimants and affected liability or interest
  3. 3 Whether force majeure (COVID-19) suspended or terminated obligations under the agreements

Ratio Decidendi

The Claimants established their entitlement to recover the principal, interest, and fees under the 2011 and 2014 Facility Agreements. The agreements were governed by English law, not Indian law. The RBI moratorium did not apply to these non-performing assets and was not accepted by the Defendants. No force majeure or implied terms suspended or barred enforcement. The acceleration and guarantee demands were valid (with minor timing caveats), and the quantum of sums due was proved to the requisite standard. Judgment is entered for the Claimants for the full amounts claimed.

Court Disposition

Judgment for the Claimants

Orders

  • Defendants to pay Claimants US$1,132,450,591.19 principal, US$1,058,358,139.92 interest (as at 10 October 2023), US$180,000 agency fees (2011 Facility), and US$30,000 agency fees (2014 Facility)
  • Claimants to prepare draft order to give effect to judgment