Misrepresentation and due diligence: The HSBC case

By Ashish Razdan and Sameer Sah, Khaitan & Co
0
2578
LinkedIn
Facebook
Twitter
Whatsapp
Telegram
Copy link

Private equity investments in India are relatively recent when compared with more developed or economically liberalized countries. While Indian legal practitioners have based their investment agreement precedents on the forms typically used in Western economies, customized where required by Indian laws, instances of parties seeking enforcement or challenging the terms of such investment contracts before Indian courts are gradually increasing. One such recent judgment is the case of HSBC PI Holdings v Avitel Post Studioz Limited.

Ashish Razdan
Ashish Razdan

HSBC invested US$60 million in Avitel in May 2011, and entered into share subscription and share purchase agreements with Avitel and its promoters. The contracts were governed by Indian law, and provided for arbitration in Singapore before the Singapore International Arbitration Centre.

The subscription agreement included a warranty from the promoters stating: “The information provided to the Investor prior to and during the preparation and negotiation of this Agreement was provided by the Company and the Promoters and/or its representatives and advisors in good faith and is true, accurate and not misleading.”

You must be a subscribersubscribersubscribersubscriber to read this content, please subscribesubscribesubscribesubscribe today.

For group subscribers, please click here to access.
Interested in group subscription? Please contact us.

你需要登录去解锁本文内容。欢迎注册账号。如果想阅读月刊所有文章,欢迎成为我们的订阅会员成为我们的订阅会员

已有集团订阅,可点击此处继续浏览。
如对集团订阅感兴趣,请联络我们

Ashish Razdan is an associate partner and Sameer Sah is a principal associate at Khaitan & Co. Views of the authors are personal and should not be considered as those of the firm.

Khaitan_&_Co_-_logo_BRAND_NEW

Khaitan & Co

One Indiabulls Centre, 13th Floor, Tower 1

841 Senapati Bapat Marg

Mumbai 400 013, India

Tel: +91 22 6636 5000

Fax: +91 22 6636 5050

Email: mumbai@khaitanco.com

Bangalore | Kolkata | Mumbai | New Delhi

LinkedIn
Facebook
Twitter
Whatsapp
Telegram
Copy link