ICICI Bank Limited v Bavaguthu Raghuram Shetty [2022] DIFC CFI 034

February 17, 2025 court of first instance - Judgments

Claim No: CFI 034/2022

IN THE DUBAI INTERNATIONAL FINANCIAL CENTRE COURTS

In the name of His Highness Sheikh Mohammad Bin Rashid Al Maktoum, Ruler of Dubai

IN THE COURT OF FIRST INSTANCE
BEFORE H.E JUSTICE LORD ANGUS GLENNIE

BETWEEN

ICICI BANK LIMITED

Claimant

and

BAVAGUTHU RAGHURAM SHETTY

Defendant

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Hearing :	23, 25, 26 September and 14 October 2024
Counsel :	Mark Lakin instructed by Stephenson Harwood Middle East LLP for the Claimant Pulikkal Veettil Sheheen instructed by Bakertilly Law Corporation for Legal Consultancy for the Defendant
Judgment :	17 February 2025

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JUDGMENT OF H.E. JUSTICE LORD ANGUS GLENNIE

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UPON the Trial that was held on 23, 25, 26 of September 2024 and 14 October 2024 before H.E. Justice Lord Angus Glennie with counsel for the Claimant and counsel for the Defendant in attendance (the “Trial”)

AND UPON the Order of H.E. Justice Lord Angus Glennie dated 1 October 2024 directing the parties to file written closing submissions by 4pm on 28 October 2024 (the “Order”)

AND UPON reviewing the Consent Orders dated 4 and 12 November 2024 amending paragraph 2 of the Order to extend the time to file written closing submissions to 4pm on 18 November 2024

IT IS HEREBY ORDERED THAT:

1. The Claimant’s claim under the Modular Personal Guarantee fails and is dismissed.

2. The Claimant’s claim under the three NMC Personal Guarantees succeeds in the sum of USD 106,294,108.

3. The parties are at liberty to present written submissions concerning (i) interest; and (ii) costs within 28 days from the date of this Order.

Issued by:
Hayley Norton
Assistant Registrar
Date of issue: 17 February 2025
At: 9am

SCHEDULE OF REASONS

Introduction

1. The Claimant is a Bank (the “Bank”).

2. The Defendant (“Dr Shetty”) is the founder of NMC Healthcare LLC (“NMC”), of which he was Chief Executive Officer until 2017 when he stood down to become non-executive joint chairman of the company. Details of his career and in particular of his involvement with NMC appear later when I set out parts of his evidence.

3. In this action the Bank claims from Dr Shetty sums in excess of USD 125 million. Those sums are said to be due to the Bank from NMC and Modular Concepts LLC (“Modular”) under Facility Agreements entered into by them with the Bank (respectively the “NMC Facility Agreements” and the “Modular Facility Agreement”). It is not in dispute that NMC and Modular entered into such Facility Agreements and, though the precise sums are not admitted, owe the Bank significant sums by way of principal and interest thereunder. But both NMC and Modular are insolvent. Accordingly, the Bank has turned its attentions to Dr Shetty. Dr Shetty is said to be liable in the like amounts under Deeds of Personal Guarantee (the “NMC Personal Guarantees” and the “Modular Personal Guarantee”) in terms of which, so it is alleged, Dr Shetty guaranteed immediate repayment of debts owed by NMC and Modular under those Facility Agreements.

4. Dr Shetty denies all liability. In particular, he denies having signed or lent his signature to any of the relevant Personal Guarantees. Whether he did so or not is the main issue in the case.

Procedural Matters

5. Both sides lodged Skeleton Arguments in advance of the trial. On the first morning of the trial Mr Lakin, for the Bank, complained that a number of “Grounds” set out in the Defen