London Court Orders Sivasankaran to Pay ₹1,250 Crore to IDBI Bank

A London court has ruled in favor of IDBI Bank, directing Axcel Sunshine Ltd, linked to former Aircel promoter Chinnakannan Sivasankaran, to pay $143.7 million (approximately ₹1,250 crore) towards principal and interest on a defaulted loan. The dispute stems from a $67 million loan taken in 2014 by Axcel Sunshine Ltd, a subsidiary of Siva Industries and Holdings Ltd. Siva Industries had provided a letter of comfort for the loan, which was issued by the now-defunct Dubai International Financial Centre branch of IDBI Bank. Axcel pledged shares of Tata Teleservices Ltd (TTSL) as collateral. However, after Axcel defaulted, Siva Industries refused to honor the loan, arguing that a letter of comfort does not impose liability as a corporate guarantee does. On 27 February, the England and Wales High Court rejected this argument, ruling that the letter of comfort imposed explicit legal obligations, effectively serving as both a guarantee and an indemnity.