Bahrain telecom operator wins multi-million-dollar claim against Indian firm

By Danish Khan | Jun 13, 2014, 02.30 AM 

The London high court has allowed the multi-million-dollar claim of Batelco Group, Bahrain's major telecom operator, against Siva Ltd, an Indian company. In a judgment released on Thursday, Justice Popplewell of the commercial court concluded that "the claim succeeds" and awarded Batelco US $184,793,000 together with a further US $30,000 per day from November 1, 2012.

The dispute arose after S Tel, a joint venture between Batelco and Siva Ltd, had its 2G licence cancelled by India's Supreme Court in February 2012. Batelco had commenced legal proceedings alleging that Chinnakannan Sivasankaran, the well-known owner of Siva Ltd, had not enforced a settlement agreement over the joint venture.

In January 2008, a 2G licence was granted to S Tel and, during 2009, BMIC Ltd - a 100 per cent Batelcoowned subsidiary company -- acquired 42.7 per cent in S Tel which was registered in India. As per an option agreement, that was executed on May 8, 2009, Siva Ltd would have to purchase BMIC's stake in S Tel for the same amount that BMIC had paid while subscribing for those shares.

The agreement would come into force if the company failed to secure finance, or in the event that the licence granted to S Tel by Indian government faced a threat.

However, differences arose over the nature of this option agreement. Sivasankaran told the court that he had been persuaded to give such a guarantee by an assurance from the chairman of Batelco, Shaikh Hamad Abdulla Mohamed Al Khalifa, that it would "be purely cosmetic and symbolic and for optical purposes and that he would never call on it". Shaikh Hamad denied any such assurance.

After the 2G licence cancellation, Batelco announced its plan to exit S Tel by selling its 42.7 per cent stake which was supposed to take place by October 2012. Batelco then approached the UK high court of justice against Sivasankaran and Siva Ltd for failing to adhere to a settlement agreement.

Chinnakaran Sivasankaran is known as a reclusive and highly successful businessman. He is known as one of the largest landowners in Seychelles. The Siva group is a US $3 billion conglomerate with operations in palm oil, commodities trading, agro exports, shipping and logistics among others.

http://www.punemirror.in/news/india/Bahrain-telecom-operator-wins-multi-million-dollar-claim-against-Indian-firm/articleshow/36448527.cms 

Comments

Post a Comment

Popular posts from this blog

Zil Pasyon: The Island Dream of Mukesh Valabhji & Kishore Buxani

Image
  From the 1970s until 2007 Félicité Island in the Seychelles laid dormant, populated only by the abandoned remains of a coconut plantation. Located within Seychelles’ inner islands, Félicité was secluded while remaining conveniently close to its neighbouring islands and was well known for its stunning views & nature. It was no surprise when international luxury resort brand Six Senses Hotels Resorts Spas announced they were coming to Félicité Island.  In August 2007 the Seychelles government granted a 99-year lease on Félicité Island – also known as Zil Pasyon (or "island of passion" in the local Seychellois Creole language), to a group of investors who aimed to build a luxurious world-class resort and residential villas. The project initially stalled for several years due to the 2008 global financial crisis, leading to a halt in construction. In 2013 a new pair of investors became involved, restarting development.  One man was Singaporean real-estate mogul Kishore B...
Read more

IS SEYCHELLES THE NORTH KOREA OF INDIAN OCEAN?

Image
Jean-Paul David says he was hit in the face with a baton during a late-night raid. A young man was hospitalized on Monday evening after sustaining serious injuries from what he says was a police beating. Jean-Paul David, 25, who lost teeth and hurt his right leg in the incident, now says he is planning to lodge a court case against the authorities. The police have launched an investigation in the allegation of police brutality, confirmed Police Public Relations Officer, Jean Toussaint. TODAY visited Mr David in the D’Offay Ward yesterday afternoon. Speaking through his friend, on account of the heavy swelling around his mouth, he said the incident unfolded at 8:00 pm in Roche Bois, Belonie. A group of 15 people were hanging around the area, when he says a small pickup and a Terios pulled up. Without identifying themselves, police then shot a canister of teargas at them, sending the group running in every direction, he recounts. Along with everyone else, he set ...
Read more

Seychelles Chamber of Commerce chairman Marco Francis refutes Sri Lankan fraud allegations

Image
Marco denies involvement with Robert November 5, 2014 The story published in Lanka Herald about Sri Lankans being swindled in the Seychelles has resulted in one of the accused, Marco Francis writing to the website disowning himself from Robert Piksa’s actions. Francis in his response said, “Yes, I am a shareholder in a company with Mr Piksa and yes, we export fish to Sri Lanka, but all our activities are above board. Also whatever dealings Robert Piksa has or had done on his own I cannot be responsible. I have never indulged in nor will ever go into money laundering.” Following is the response sent by Marco Francis. I am writing to you in reply to the article in Lanka Herald on October 30, 2014 title “Sri Lankans swindled in the Seychelles”. In the article you specifically mentioned my name Marco L Francis have “swindled” a number of unidentified Sri-Lankan nationals seeking to do business in the Seychelles. Also “cheated many Sri Lankan businessmen promising dea...
Read more