Nabil Bank wins China court case to claim $7,449,386.32

KATHMANDU: Nabil Bank has won a legal case in China and is legally entitled to receive $7,449,386.32 under four bank guarantees after the Higher People’s Court in Chongqing upheld an earlier ruling in the bank’s favour.

The latest verdict, issued on September 23, 2025, confirmed the initial decision that Nabil Bank should be paid under the counter‑guarantees.

The dispute arose after the Trishuli III B Hydropower Project terminated its contract with Chinese construction company Shuifa ANHE Group Co. On March 4, 2018, Trishuli Hydropower Company signed a contract with Shuifa ANHE Group Co to develop the project within three years; the contractor’s failure to carry out the work as agreed and within the stipulated time led to termination of the contract and the forfeiture of the bank guarantees.

Nabil Bank received a formal call for guarantee payment on December 1, 2023, and informed China Everbright Bank, Chengdu branch, via a SWIFT message. China Everbright Bank refused to pay under the counter‑guarantee, citing a prohibitory order issued by the Chengdu Financial Court on December 10, 2023, that prevented it from releasing the funds.

Despite China Everbright’s refusal, Nabil Bank had already paid the guaranteed amount to Trishuli Hydropower Company in fulfilment of its obligations and subsequently filed a case against China Everbright Bank for refusing to honour the counter‑guarantee. The court initially ruled in favour of Nabil Bank, and Shuifa ANHE Group appealed to the Higher People’s Court, which has now upheld the earlier judgment.