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Informist, Monday, Feb. 23, 2026

 

NEW DELHI – The Delhi High Court Monday asked Prakash Industries to pay the amount under a foreign decree passed by the High Court of Justice Business & Property Courts of England & Wales Commercial Court, Queen's Bench Division in 2022 to a German company Peter Beck Und Partner Vermgensverwaltung Gmbh. Some of the amount deposited with the Delhi High Court's registry by Prakash Industries has to be remitted to the German company and the remaining will be paid by the Indian company itself, said the court.

 

The decree amount includes $11.23 million along with an interest amounting to $2.6 million relating to early redemption amount.  The decreee also includes damages for late conversion of bonds amounting to $3.5 million along with an interest amounting to $514,995.52. In addition, 60% of Peter Beck's costs for the proceedings and an amount of 558,034.99 pound sterling as an interim payment on account of the costs awarded. The amount also includes interest at a rate of 8% per annum, calculated from Jun. 4, 2022, till the date of payment.

 

The decree passed by the English court is executable under Section 44A of the Code of Civil Procedure and does not fall under the exceptions provided under the law, said the Delhi High Court. The objections raised on behalf of Prakash Industries were completely devoid of merits and have been filed solely to cause obstruction and to cause delay in the execution of the foreign decree, said the court. Consequently, the contentions were rejected with a fine of INR 100,000 payable by Prakash Industries to Peter Beck, it added.

 

The case has its genesis from Prakash Industries issuing foreign currency convertible bonds in 2009 and 2010, which were subscribed by Peter Beck. Thereafter, a subscription agreement was entered between the parties which was governed by the English law. 

 

However, disputes arose between the parties on account of default committed by Prakash Industries in paying the coupon interest on these bonds. Prakash Industries instituted proceedings against Peter Beck before the English court, seeking a declaration of non-liability to pay the coupon interest and damages for late conversions. Peter Beck filed its counter-claim seeking payment of early redemption amount triggered by non-payment of coupon interest and damages for late conversion of these bonds.

 

In 2022, the English court pronounced its final judgment and held that Prakash Industries defaulted in making payments of coupon interest and delayed the conversion of the bonds into equity. Seeking an execution of the English court's decree, the German company moved the Delhi High Court.  

 

At 1416 IST, the shares of Prakash Industries traded 0.3% lower at INR 137.56 on the National Stock Exchange.  End

 

US$1 = INR 90.85

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Surya Tripathi

Edited by Akul Nishant Akhoury

 

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