Law firm Baker McKenzie has announced the successful defence of Dubai Islamic Bank (DIB) against a $2bn claim brought against it in the English Commercial Court by a holding company owned by an Argentinian property developer.
Plantation Holdings had alleged DIB breached its duties as mortgagee in possession of a 20 million square foot land plot on the outskirts of Dubai it planned to develop into a luxury lifestyle and equestrian complex.
The bank took security over the project as part of the restructuring of 4500m of debt owed to its as part of a complex receivables financing fraud, according to Baker McKenzie.
The case was hear during an eight-week trial with witnesses from several jurisdictions leading to the March 24 ruling that Plantations principal director had made up evidence and another witness had manufactured documents.
The bank was ordered to pay damages equivalent to GBP1 while the plantation was ordered to pay 70 per cent of the bank’s costs and refused permission to appeal.