A UK high court judge has ruled two Indian cash buyers can be pursued over bank debts.
Christopher Hancock QC, sitting as a judge, said Punjab National Bank (PNB) had been trying to recover $18.5m plus interest from defendants Boris Shipping, registered in the Marshall Islands, and Jarc Shipping, registered in St Vincent and the Grenadines.
Also named in the action are six members of the Jain family as guarantors: two married couples and two sons.
PNB believes Boris and Jarc were engaged in the business of purchasing vessels for scrapping in India, the judgement said.
In 2012 and 2013 they both approached PNB in order to obtain overdraft facilities for working capital requirements, supported by personal guarantees from the family.
PNB provided an overdraft facility of $10m to Boris. It also provided $14m to Jarc, later reduced to $10m.
Boris drew down $8.52m and Jarc took $13.35m, but this was then reduced to $10m.
The sums remain outstanding.
Notices sent
Notices demanding repayment of the balances were sent by letters to the registered address of Boris and Jarc in 2016.
Further letters of demand were sent to Boris and Jarc in 2017, informing them that the failure to pay constituted an event of default and that all amounts owed were immediately repayable.
Letters demanding repayment were also sent to each of the Boris and Jarc guarantors to their last known address in India; and by email to their last known email address.
The judge ruled that claim forms had been validly served on the defendants.
He gave permission for the bank to apply for summary judgement against them.
The application for this can be served on the defendants either pursuant to the Hague Convention or via the agent for service within the jurisdiction, he added.
