Bank of Baroda Pays Rs 5700 Crore to Settle NMC Health Litigation
mumbai: State-owned Bank of Baroda informed the stock exchanges that it has reached an out-of-court settlement with NMC Health plc, NMC Healthcare Ltd and NMC Holding Ltd and agreed to pay US$600 million or around Rs 5,700 crore to resolve the long-running legal dispute arising from the collapse of the UAE-based healthcare group. The settlement amount was paid through the lender’s Abu Dhabi branch.
The matter, which is under judicial review in Dubai, involved allegations of unpaid medical equipment rentals dating back to 2020, according to reports. A Dubai court overseeing NMCH’s administration had previously refused the lessor permission to continue operations in Dubai, citing concerns that recovery options were not available to other creditors who had accepted the company’s charter.
Following the agreement, the proceedings before the Abu Dhabi Global Market Court were suspended, while the process of suspending the proceedings before the High Court of Justice of England and Wales continues.
The bank said it chose to resolve the dispute to avoid protracted litigation, uncertainty and costs associated with ongoing legal proceedings. Shares of Bank of Baroda closed the day at ₹ 260.15, down 4.18 per cent on the BSE.
“NMC Health PLC, NMC Healthcare Ltd, NMC Holding Ltd and their respective Joint Managers have settled their claims with Bank of Baroda, inter alia, in consideration of payment of US$600 million by Bank of Baroda pursuant to a settlement agreement,” the lender said.
All claims, causes of action, etc. between them. resolved without admission of liability or wrongdoing.
Stating that the reconciliation agreement and its terms will remain confidential, the bank added that the bank’s liability in these transactions is limited to this amount.
