Nepal Investment Bank Ltd. wins Bank Guarantee case of worth Rs 2.10 billion in Italy

On September 2018 Intesa Sanpaolo SPA, Bologna, Italy had issued counter guarantees to NIBL for the amount of NPR 851,416,127 and Euro 8,749,239 (Total amount NPR. 2.10 billion) in favour of Tanahu Hydropower Limited on account of their client Cooperativa Muratori and Cementisti (CMC) - C.M.C. di Ravenna Societa. However, on February, 2019 NIBL received claim from Tanahu Hydropower Ltd.  stating that their contractor, CMC had breached its obligations under the contract.  As NIBL lodged the claim to Intesa Sanpaolo SPA for the Bank guarantee amount, Istesa Sanpaolo declined to pay the amount citing the court order from Tribunale Di Bologna, Italy. NIBL, however, settled the claim immediately of Tanahu Hydro Power Ltd. as it was bound to pay as per the conditions of guarantee. In the subsequent hearings, the court had refused revoke the order that prevented Intesa Sanpaolo SPA to pay the counter guarantees to NIBL.

However, it has been learnt that after a lengthy court case, on 9 June, 2020, a full-bench of Tribunale Di Bologna has revoked it’s previous decree that had prevented Intesa, San Paolo to pay the bank guarantee amount to NIBL. Thus, the quashing of previous court order, enables NIBL to effectively receive the bank guarantee amount from the Italian bank.