Citicorp International Ltd v Shiv -Vani Oil & Gas Exploration Services Ltd
2014
COMMERCIAL COURT
United Kingdom
CORAM
- MR JUSTICE ANDREW SMITH
Areas of Law
- Contract Law
- Civil Procedure
- Conflict of Laws
2014
COMMERCIAL COURT
United Kingdom
CORAM
AI Generated Summary
Citicorp International Limited sought summary judgment against Shiv-Vani Oil & Gas Exploration Limited for US$84,100,000.33. Shiv-Vani argued for an election between English and Indian proceedings and claimed repayment required approval from the Reserve Bank of India. The court found for Citicorp, ruling its claim valid under English law and rejecting all of Shiv-Vani's defenses.
Judgment
Mr Justice Andrew Smith:
There are before me two applications: an application made by the claimant, Citicorp International Limited (“Citicorp”), by notice dated 25 September 2013 for summary judgment for US$84,100,000.33, interest and other relief; and an application by the defendant Shiv-Vani Oil & Gas Exploration Limited (“Shiv-Vani”) by notice dated 13 December 2013 that Citicorp elect within seven days whether to continue with these proceedings or with proceedings in India, and, if it choose the Indian proceedings, that these be dismissed or stayed pending the outcome in India.
Shiv-Vani, an Indian company, is said in evidence of Mr Etoori Rao, the Head of its Legal Department, to be “one of India’s leading on-shore oil and gas integrated services providers, providing onshore Exploration and Production (E&P) services ranging from seismic services, well drilling and work over operations for clients such as India’s Oil and Natural Gas Corporation (ONGC), Oil India Ltd. (OIL) and other public and private sector companies”. He describes it as “one of the premier and pioneering companies in the field of oil and gas exploration services” and a “viable business and a solvent and running company” with thousands of employees in India, with a turnover as at 31 March 2013 of Rs 1100 crores and with fixed assets valued at 3,300 crores.
Citicorp is the trustee of two series of bonds issued by Shiv-Vani under the terms of a trust deed dated 16 July 2010. Bonds to the value of $75 million were issued on 16 July 2010 and another $5 million of bonds were issued on 12 August 2010.
The trust deed is governed by English law and has a jurisdiction clause in these terms:
“The courts of England and Wales are to have exclusive jurisdiction to settle any disputes which may arise out of or in connection with this Trust Deed, the Agency Agreement, the Conditions or the Bonds and accordingly any legal action or proceedings arising out of or in connection with this Trust Deed, the Conditions or the Bonds (“ Proceedings ”) may be brought in such courts. The Issuer irrevocably submits to the jurisdiction of such courts and waives any objections to Proceedings in such courts on the grounds of venue or on the ground that the Proceedings have been brought in an inconvenient forum. This submission is for the benefit of the Trustee and the Agents shall not limit the right on any of them to take Proceedings in any other court of competent jurisdiction nor shall the taking o