Delhi high court denies interim relief to Mercantile Ports & Logistics

MUMBAI - The Delhi High Court has declined to grant interim relief to Mercantile Ports & Logistics Limited (AIM:MPL) in its petition regarding the cancellation of a previously sanctioned One-Time Settlement (OTS) agreement with its lending consortium, according to a company press release.

The ruling, issued on Monday, relates to MPL’s challenge against the annulment of an OTS and Swiss-Challenge process that had been agreed with its lenders. The company, which operates a port and logistics facility in Navi Mumbai, claims it had fully complied with all obligations under the sanctioned OTS, including payment of earnest money of INR 43 crore (approximately US$4.8 million).

MPL stated that it had been declared the highest bidder in the original Swiss-Challenge process approved by all three consortium banks. The company expressed concern that the OTS was cancelled because Bank of Baroda withheld its final sanction for over two months without explanation.

Following the cancellation, a new Swiss-Challenge auction was launched with revised terms that excluded MPL’s subsidiary and lowered the approval threshold compared to the original process.

The company has filed an appeal at the appellate level of the Delhi High Court and indicated it may seek redress from the Supreme Court of India if necessary.

Managing Director Pav Bakhshi expressed disappointment with the ruling, stating, "We believe that we have fulfilled all our obligations and that the original agreement should be honoured."

The port facility, built with British, Indian, and American capital, is positioned to support India’s growing role in international trade, according to the company’s statement.

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