July 19, 2023
On 17 July 2023, the judgment of Justice Lord Angus Glennie in the case of Union Bank of India v Velocity Industries LLC and Ors [2020] DIFC CFI 025 was handed down following a ten-day trial in the DIFC Court of First Instance.
The claim was made by the Claimant Bank for over USD 2.4 million in respect of sums loaned to the First Defendant pursuant to a Master Facility Agreement governed by UAE law. In addition to its claim against the First Defendant borrower, the Claimant sought payment of the sums from two corporate guarantors (the Second and Third Defendants), and five personal guarantors (the Fourth to Eighth Defendants).
The case raised issues concerning the contractual interpretation of the Master Facility Agreement and the approach of UAE law to personal guarantees. Whilst the Claimant Bank succeeded against the First Defendant, its claims against the other Defendants were dismissed.
Zara McGlone acted for the successful Sixth to Eighth Defendants, instructed by KBH.
Download the judgment.
