State-owned Bank of Baroda (BoB) has entered into an out-of-court settlement with NMC Health plc, NMC Healthcare Ltd and NMC Holding Ltd, agreeing to pay US$600mn (million), or about ₹5,700 crore, to resolve a long-running legal dispute arising from the collapse of the UAE-based healthcare group.
In
a regulatory filing with the stock exchanges under the Securities and Exchange Board of India (SEBI) (Listing Obligations and Disclosure Requirements) Regulations, the public sector lender said the settlement amount had been paid through its Abu Dhabi branch.
The Bank said the settlement resolves all claims and causes of action between Bank of Baroda, NMC Health, NMC Healthcare, NMC Holding and their respective joint administrators.
"All claims, causes of action, etc. between them have been resolved without admission of liability or wrongdoing," BoB said in the filing.
According to the filing, the settlement relates to proceedings before the Abu Dhabi Global Market (ADGM) Court of First Instance and the High Court of Justice of England and Wales arising out of the insolvency of the NMC group.
BoB said the settlement agreement and its terms will remain confidential, except for the disclosed payment amount. It also clarified that its liability in the proceedings is limited to the agreed settlement amount of US$600mn.
Following the agreement, proceedings before the ADGM Court have been discontinued, while the process of discontinuing the proceedings before the High Court of Justice of England and Wales is under way.
The Bank said it chose to settle the dispute to avoid prolonged litigation, uncertainty and the costs associated with continuing legal proceedings.
The announcement weighed on investor sentiment. Shares of Bank of Baroda closed at ₹260.15 on Thursday on the BSE, down 4.18%.
The dispute forms part of the wider legal fallout from the collapse of NMC Health, once one of the Middle East's largest private healthcare providers. The company entered administration in 2020 after the discovery of billions of dollars of previously undisclosed debt, triggering multiple legal proceedings involving lenders and administrators across jurisdictions.
While the settlement attracted immediate market attention because of its size, the Bank indicated that resolving the litigation removes a significant legal overhang and provides certainty by capping its financial exposure at the agreed settlement amount.
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Why should Bank of Barod settle his debt for 600 mil and avoid prolonged legal process?
Who takes the call on such things? 600 Mil, will they allow a poor farmer to get away like this.
BR shetty enjoyed life in buying apartments in most costliest buildings in UAE and general public is paying the price for that.
This is what I know. You may have better and more internal knowledge of this case.