China’s Henan High Court ruled in favor of two Nepali banks

KATHMANDU: The High Court of China’s Henan Province ruled in favor of Himalayan Bank and Bank of Kathmandu in the case involving the bank guarantee of the Melamchi water supply project.

Following the High Court’s July 25, 2022 ruling that the amount due to the guarantee should be returned to the concerned bank, China Construction Bank is now required to return the amount due to the counter-guarantee.

Himalayan Bank will be reimbursed 66 lakh 55 thousand US dollars for the counter-guarantee, according to the decision.

In this case, the Zhangzhou District Court of China ruled in favor of Nepali Bank on November 6, 2020.

However, the contractor, China Railway 15 Bureau, filed an appeal with the High Court, claiming that it was dissatisfied with the decision.