Monday 26th October 2020

NIBL ‘Wins Legal Battle’ Against Italian Firm to Recover NPR 2.1 Billion

It has taken 16 months for NIBL to get justice in the case.
Business

Government

News

Special Stories

 
NIBL ‘Wins Legal Battle’ Against Italian Firm to Recover NPR 2.1 Billion

After 16 months of rigorous struggle, the Nepal Investment Bank Ltd (NIBL) has won its legal battle against its Italian counterpart, Intesa Sanpaolo SPA, to secure a counter-guarantee payment of nearly NPR 2.1 billion.

A three-member panel of judges of the Italian high court has ruled out in favor of NIBL on June 9, 2020.

In September 2018, Intesa Sanpaolo SPA issued counter-guarantees to NIBL for the amount of NPR. 2.10 billion on account of their client Cooperativa Muratori e Cementisti di Ravenna (CMC), in relation to Tanahu Hydropower Ltd.

However, in February 2019, NIBL had received guarantee claims from Tanahu Hydropower, stating that they have terminated the contract with CMC over its dismal performance to build the hydropower project.

As per the conditions of the guarantee, NIBL had settled the claim of Tanahu Hydro Power Ltd. in March 2019.

However, when NIBL lodged the claim to Intesa Sanpaolo SPA for the amount, the latter has rejected the payment claim citing a stay order from the Italian court Tribunale Di Bologna.

Nepal Investment Bank Ltd (NIBL)

Even in the subsequent hearings since March 2019, the court had refused to revoke its stay order. However, on June 9, 2020, a full-bench of the same court has revoked the stay order allowing the Italian bank to release the guarantee amount to NIBL.

NIBL’s Legal Battle At A Glance-

  • September 2018 – Intesa Sanpaolo SPA issues counter-guarantee to NIBL
  • February 2018 – CMC abandons Tanahu Hydropower project
  • February 2019 – NIBL receives guarantee claims from Tanahu Hydropower
  • February 2019 – NIBL lodges claims from Intesa for guarantee amount
  • February 2019 – Intesa rejects payment
  • March 2019 – Tanahu Hydropower terminates contract with CMC
  • March 2019 – NIBL settles guarantee claim of Tanahu
  • March 2019 – NIBL fights legal case to recover guarantee amount
  • June 2020 – Local court rules decision in favor of NIBL

“The court decision to quash its previous order has paved the legal way for us to claim the bank guarantee from the Italian bank. With the release of the money, we would not be required to provision the losses by mid-July,” said Jyoti Prakash Pandey, the NIBL’s CEO.

“The verdict of the Italian court gives confidence to Nepali banks when it comes to issues of international bank guarantees,” expressed Pandit.

Stay Tuned to Nepali Sansar for Latest News!

June 10, 2020 |

 
The buddha life journey and significance
 
 

 

Subscribe to our Newsletter

Sign up for more inspiring latest news, events, tourism, and more from Nepalisansar.

Read previous post:
WHO
COVID-19 Update: 40% of COVID-19 Transmissions From ‘Asymptotic’ Patients: WHO

So far, Nepal has reported 4,085 COVID-19 positive cases and 15 death cases. Currently, there are…Read more

Close