July 25, 2022 court of first instance - Orders
Claim No: CFI 043/2021
IN THE DUBAI INTERNATIONAL FINANCIAL CENTRE COURTS
IN THE COURT OF FIRST INSTANCE
BETWEEN
PUNJAB NATIONAL BANK, DIFC BRANCH
Claimant
and
(1) UAE EXCHANGE CENTRE LLC
(2) MR. BAVAGUTHU RAGHURAM SHETTY
(3) MR. BINAY RAGHURAM SHETTY
Defendants
DEFAULT JUDGMENT OF H.E. JUSTICE NASSIR AL NASSER
UPON the request made by the Claimant on 21 July 2022 for a Default Judgment in accordance with Rule 13.1 (1) and (2) of the Rules of the DIFC Courts (the “Request”) (“RDC”), it is found as follows:
1. The Request is not one prohibited by RDC 13.3 (1) or (2).
2. The Defendants have failed to file an Acknowledgment of Service or a Defence to the claim (or any part of the claim) with the DIFC Courts and the relevant time for so doing has expired (RDC 13.4).
3. The Defendants have not: (i) applied to the DIFC Courts to have the Claimant’s statement of case struck out under RDC 4.16; or for immediate judgment under RDC Part 24 (RDC 13.6(1)); (ii) satisfied the whole claim (including any claim for costs) on which the Claimant is seeking judgment; or (iii) filed or served on the Claimant an admission under RDC 15.14 or 15.24 together with a request for time to pay (RDC 13.6(3)).
4. The Claimant filed a Certificate of Service in accordance with RDC 9.43 on 7 January 2022, and on 28 February 2022.
5. The Claimant has followed the required procedure for obtaining Default Judgment (RDC 13.7 and 13.8).
6. The claim is for a specified sum of money and the Request specifies the date by which the whole of the judgment debt is to be paid or the times and rate at which it is to be paid by instalments (RDC 13.9).
7. The Request includes a request for interest pursuant to RDC 13.14 and the Claim Form sets out the calculation of interest in the claim.
8. I am satisfied that the conditions of RDC 13.22 and RDC 13.23 [defendant served outside jurisdiction] have been met.
9. The Claimant has submitted evidence, as required by RDC 13.24, that: (i) the claim is one that the DIFC Courts have power to hear and decide; (ii) no other court has exclusive jurisdiction to hear and decide the claim; and (iii) the claim has been properly served (RDC 13.22/13.23).
ACCORDINGLY, IT IS HEREBY ORDERED THAT
1. The Request is granted.
2. The Defendants are ordered to pay the Claimant:
i. The amount of USD 37,199,361.09 as follows which consists of the following:
a) USD 34,991,232.36 (United States Dollars Thirty-four million nine hundred ninety-one thousand two hundred thirty-two and thirty-six cents) as the amount outstanding on 1 June 2020 as on the date of NPA.
b) Interest is claimed USD 1,672,980.95 (United States Dollars One million six hundred seventy-two thousand nine hundred eighty and ninety-five cents only) under clause 6 of the Facility Agreement for the period from 01.06.2020 (the date on which the Respondent’s account was declared a Non-Profitable Asset) to 28.02.2021, being overnight LIBOR or Cost of Funds, whichever is higher plus 175 bps per annum, and continues to accrue (“Interest”).
c) USD 535,147.78 (United States Dollars Five hundred thirty-five thousand one hundred forty-seven and seventy-eight cents) As Penal interest claimed at 2% under clause 7.4 of the Facility Agreement from 1 June 2020 (the date on which the Respondent’s account was declared a Non-Profitable Asset) to 28 February 2021 and continues to accrue at the aggregate of 2% per annum (“Penal Interest”) and
ii. General interest of USD 4525.15 per day from 28 February 2021 until the date of Judgment.
iii. Penalty interest of USD 1967.46 per day from 28 February 2021 until the date of Judgment.
iv. The Claimant’s request of post judgment interest at the rate of 9% per annum, on the amount set out at paragraph 2(i) of this order, shall apply from the date of this Judgment until the date of full payment.
v. The Defendants shall pay the Claimant its legal costs to be assessed by the Registrar if not agreed.
vi. The Defendants shall pay the Claimant its Court fees in the sum of USD 3,8779.66.
3. The Claimant shall serve a copy of this Default Judgment on the Defendants.
Issued by:
Nour Hineidi
Registrar
Date of Issue: 25 July 2022
Time: 3.45pm
