Nepali banks win Rs 1.5 billion case against Chinese bank

Khabarhub

November 6, 2020

2 MIN READ

Nepali banks win Rs 1.5 billion case against Chinese bank

Logo of Himalayan Bank(L) and Bank of Kathmandu.

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KATHMANDU: Nepal’s Himalayan Bank and Bank of Kathmandu have won the case after a long round of lawsuits against a Chinese bank and contractor.

As soon as the case is won, the amount equal to Rs 1.5 billion will be returned.

The money will be refunded after both the banks won the lawsuit filed in China eight years ago regarding the refund of the security deposit of the Melamchi Drinking Water Project. However, the defendant is still likely to go to the high court for an appeal.

Nepali banks have won the case in the hearing held by the Henan Provincial People’s Court on Thursday. Both the banks have said that they will send a letter with a claim for a refund.

Chief Executive Officer of Himalayan Bank, Ashok Rana, said that he had received the news that he had won the case on Friday.

Bank of Kathmandu and Himalaya Bank had given Rs 1.5 billion eight years ago on behalf of China Construction Bank (CCB) for performance guarantee and advance payment of Melamchi Drinking Water Project.

At that time, the  CCB was the guarantor of China Railway 15th Bureau Group, the construction company. Bank of Kathmandu and Himalayan Bank were the counter guarantors of CCB.

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