IBL, Afrasia win arbitration battle against National Bank of Canada

Mauritian companies IBL Ltd, Intrasia Capital Pte Ltd, Mon Loisir Ltée and AfrAsia Bank Ltd have won their arbitration battle against the National Bank of Canada (NCB).

The International Court of Arbitration in London, which was called to rule on a dispute over the termination of a Shareholders’ Agreement with Afrasia, has fined the NCB to pay 90% of the arbitration and legal expenses incurred by the Mauritian entities.

Thus, the NCB will have to reimburse legal fees incurred by shareholders IBL Ltd, Intrasia Capital Pte Ltd, Mon Loisir Ltée amounting to GBP718,886.70 and USD49,603.50. It will also be liable for arbitration fees incurred by IBL Ltd, Intrasia Capital Pte Ltd, Mon Loisir Ltée (USD 84,782.50) as well as the arbitration fees incurred by AfrAsia bank, amounting to USD 38,537.50.

NBC had demanded that the notice of termination of the Shareholders’ Agreement be declared invalid and ineffective. NBC eventually called for termination notices to take effect only after the expiry of an eighteen-month notice period.

In its judgment, the CIA concluded that IBL Ltd, Intrasia Capital Pte Ltd, Mon Loisir Ltée had followed relevant laws and procedures.