Drt Asks Daewoo To Pay Exim Rs 145 Crore

The Delhi Debt Recovery Tribunal (DRT) today passed a judgment asking Daewoo Motors India Ltd (DMIL) to pay the Export Import Bank of India (Exim Bank) a sum of Rs 144.66 crore.

This is possibly the biggest award given by any DRT. Exim had moved the DRT based on an admission by DMIL in its balance sheet that it owed the bank Rs 144.66 crore in principal and interest.

Exim had sanctioned two term loans to DMIL - (a) a $20 million term loan in August 1996 and (b) a rupee term loan of Rs 30 crore in November 98. The bank had filed a case against DMIL before the DRT for recovery of its dues in May 2002.

 

In fact the Mumbai DRT, in a case filed by financial institutions, had appointed a court receiver to auction the Surajpur factory of Daewoo.

The auction, held a couple of months back, got bogged down as the term lending financial institutions and banks did agree on the procedure for bifurcation of assets.

A second round of auction is scheduled to be held on February 12 at the Indian Merchants