DIFC 069/2019
State Bank Of India (Difc Branch) V (1) Moulds Pertochem Fze (2) Moulds & Metals Fze (3) Viwasvat Kumar Shastri
Type
Case
Court
Dubai International Financial Centre - Court of First Instance
Jurisdiction
Dubai International Financial Centre
Taxonomy
Guarantees, Mortgages, Financial & Business Offences, Payment & Payment Systems, Banks, General Banking & Finance Law, Civil Costs, Lending & Security, Facility Agreements
Decision date
20 Sep 2020
Panel
Justice Roger Giles
Catchwords
Guarantees – Mortgage – Costs – Indebtedness – Facility Agreement – Cheque – Facility Letter – Payment – Pledged Account
This case involved a bank's claim against a guarantor of its customer's indebtedness where a Facility Agreement had been entered ino for the provision of finance. The defendant had mortgaged three properties to Mashreq and Moulds Metals mortgaged another three properties to Mashreq as security for repayment by Moulds Petrochem. A cheque was also issued by a company shareholder which but the status of this cheque and when it could be cashed was not clear. Also considered was whether the claim was time barred and the costs.
Background
State Bank of India (the Bank) and Moulds Petrochem FZE (Moulds Petrochem) entered into a Facility Agreement dated 20 May 2015 for the provision of finance of a total amount of USD 10 million for Moulds Petrochem's working capital requirements. The Agreement included guarantees by Moulds & Metals FZE (Moulds Metals) and Mr Vivaswat Kumar Shastri of the performance of Moulds Petrochem's obligations. It was expressed as being governed by the laws of the UAE.