Bank of Baroda Pays Rs 5700 Crore to Settle NMC Health Litigation

Mumbai: State owned Bank of Baroda has informed exchanges that it has entered into an out-of-court settlement with NMC Health plc, NMC Healthcare Ltd and NMC Holding Ltd, agreeing to pay US$600 million, or about ₹5,700 crore, to resolve a long-running legal dispute arising from the collapse of the UAE-based healthcare group. The settlement amount had been paid through the lender's Abu Dhabi branch.

According to reports, the matter, which had been under judicial review in Dubai, involved claims related to unpaid medical equipment leases dating back to 2020. A Dubai court overseeing NMCH’s administration had previously denied the lessor permission to continue proceedings in Dubai, citing concerns that recovery options were not available to other creditors who accepted the company’s deed of company arrangement.

Following the agreement, proceedings before the Abu Dhabi Global Market Court have been discontinued, while the process of discontinuing the proceedings before the High Court of Justice of England and Wales is under way.

The Bank said it chose to settle the dispute to avoid prolonged litigation, uncertainty and the costs associated with continuing legal proceedings. Shares of Bank of Baroda closed at ₹260.15 for the day on the BSE, down 4.18 per cent.

"NMC Health PLC, NMC Healthcare Ltd, NMC Holding Ltd, and their respective Joint Administrators, have resolved the claims between them and the Bank of Baroda in consideration for, inter alia, payment by Bank of Baroda of USD 600 million, pursuant to a settlement agreement," the lender said.

All claims, causes of action, etc. between them have been resolved without admission of liability or wrongdoing, it said.

The settlement agreement and its terms otherwise remain confidential, it said, adding that the liability of the bank in these proceedings is limited to this sum.