British International Investment Plc v Sunny Varkey & Anor

British International Investment Plc v Sunny Varkey & Anor

The claimant is entitled to summary judgment for the principal, interest, and default interest due under the agreement and guarantee, as the defendants have no real prospect of defending the claim, have not engaged with the proceedings, and have failed to comply with contractual obligations. Service by alternative method was valid and effective. Declaratory relief and indemnity are appropriate. Costs are to be assessed on the indemnity basis due to the defendants' conduct.

Parties
Claimant: British International Investment Plc; Defendant: Sunny Varkey; Defendant: Varkey Group Limited
Jurisdiction
England and Wales
Judgment Date
17 July 2024
Procedural Posture
Commercial / Summary Judgment Application
Outcome
summary judgment for claimant
Legal Topics
Summary Judgment, Loan Agreement Enforcement, Guarantee and Indemnity, Service by Alternative Method, Costs Assessment
Contract Law Commercial Law Summary Judgment Loan Agreement Enforcement Guarantee and Indemnity Service by Alternative Method Costs Assessment

Case Brief

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Parties

British International Investment Plc

Claimant

Sunny Varkey

Defendant

Varkey Group Limited

Defendant

Procedural Posture

Commercial / Summary Judgment Application

Legal Issues

  1. 1 Whether the claimant is entitled to summary judgment for outstanding sums under a share and loan note sale agreement and guarantee
  2. 2 Whether service by alternative method was valid and effective
  3. 3 Whether declaratory relief and indemnity should be granted

Ratio Decidendi

The claimant is entitled to summary judgment for the principal, interest, and default interest due under the agreement and guarantee, as the defendants have no real prospect of defending the claim, have not engaged with the proceedings, and have failed to comply with contractual obligations. Service by alternative method was valid and effective. Declaratory relief and indemnity are appropriate. Costs are to be assessed on the indemnity basis due to the defendants' conduct.

Court Disposition

summary judgment for claimant

Orders

  • Judgment for the claimant against both defendants for USD 18,731,857.81 principal, USD 1,454,118.13 interest, and USD 3,614,092.99 default interest
  • Declaration that the first defendant shall, or shall procure that VGL shall, indemnify the claimant against any cost, loss or liability incurred as a result of the failure to pay the first loan repayment instalment due on 30 December 2021 and/or the failure to remedy the non-payment by 11 January 2022