KATHMANDU, Dec 22: Nabil Bank has won a legal case in a Chinese court related to the counter guarantee issued for Trishuli Hydropower Company Limited.
With a verdict from the Higher People’s Court in Chongqing in favour of Nabil Bank, the bank is now legally entitled to receive an amount equivalent to USD 7,449,386.32 under four bank guarantees.
The dispute arose after the Trishuli III B Hydropower Project terminated its contract with the Chinese construction company Shuifa ANHE Group Co. ltd.
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Following the termination, China Everbright Bank, Chengdu Branch, refused to make payment under the counter guarantee.
Nabil Bank had received a formal call for guarantee payment on December 1, 2023, and subsequently informed China Everbright Bank through a SWIFT message. However, citing a prohibitory order issued by the Chengdu Financial Court on December 10, 2023, the Chinese bank expressed its inability to release the payment.
Despite this, Nabil Bank had already paid the guaranteed amount to Trishuli Hydropower Company Limited as per its obligations. Nabil Bank then filed a case against China Everbright Bank for refusing to honour the counter guarantee. The court initially ruled in favour of Nabil Bank.
The Shuifa ANHE Group Co Ltd later appealed the decision at the Higher People’s Court.
The latest verdict, issued on September 23, 2025, upheld the earlier decision and again ruled in favour of Nabil Bank.
Earlier, on March 4, 2018, Trishuli Hydropower Company Limited had signed a contract with the Suifa Anhe Group Company to develop the project within three years. However, the contractor’s failure to carry out the work as per the agreement and within the stipulated time led to the termination of the contract and the forfeiture of the bank guarantees.
