Batelco wins legal battle against Indian company

25/02/2016 08:33 AST

Batelco Group, the Bahrain-based international telecoms firm with operations across 14 countries, yesterday announced it has obtained freezing orders from India’s Madras High Court against certain Indian assets of Chinnakannan Sivasankaran and his related parties.

The value of the assets frozen by such orders is estimated to be approximately $74 million. The related parties referred to in the order are Mr Sivasankaran’s ex-wife Jayalakshmi Sivasankaran, his father R C K Vallal, his mother Chinnakannan Chandrammal, his long-term associates Baskaran, Nithyavathi Venkatesan and his related company, Siva.

The orders by the Madras High Court are intended to pay down a UK judgement that was awarded to BMIC (a fully-owned subsidiary of Batelco) by the English High Court of Justice totalling $212m in June 2014.

The UK judgement was awarded against Mr Sivasankaran and Siva, following BMIC’s successful litigation against them.

The UK judgment found that the defendants failed to honour a settlement agreement signed with BMIC in November 2011, relating to a commercial venture into which such parties had entered in 2009.

According to the UK judgment, full payment should have been made to BMIC by the defendants by June 26, 2014. To date the defendants have failed to pay the sum to BMIC. “We fully expect all of the respondents to honour the Indian court orders and pay to BMIC the monies owing to it under the UK judgement,” Batelco Group chief executive Ihab Hinnawi said.

“We will pursue all legal avenues available to us against such parties to secure this outstanding payment.” BMIC had acquired a 42.7 per cent stake of Indian registered S Tel in 2009. S Tel had been awarded a 2G licence by the Indian government in 2008.

Following the cancellation of 2G licence awards by India’s Supreme Court in February 2012, BMIC sought to implement an agreed put option which under certain circumstances, such as the cancellation of the licence, or in the event of a failure of Siva to secure financing, would ensure Siva bought back the shares acquired by BMIC at the price paid originally.

BMIC and the defendants entered into the binding settlement agreement to give effect to this commitment which contained a promise by Mr Sivasankaran and Siva to make payment to BMIC in agreed circumstances.

Gulf Daily News