Chongqing: Nabil Bank has emerged victorious in a legal case in China concerning the counter guarantee issued for Trishuli Hydropower Company Limited. The Higher People’s Court in Chongqing ruled in favor of Nabil Bank, granting it the right to receive USD 7,449,386.32 under four bank guarantees.
According to National News Agency Nepal, the legal dispute began when the Trishuli III B Hydropower Project ended its contract with the Chinese construction firm Shuifa ANHE Group Co Ltd. This led China Everbright Bank, Chengdu Branch, to decline payment under the counter guarantee.
Nabil Bank had been formally requested to make a guarantee payment on December 1, 2023, and had notified China Everbright Bank via a SWIFT message. However, the Chinese bank cited a prohibitory order from the Chengdu Financial Court on December 10, 2023, as the reason for not releasing the payment.
Despite the refusal, Nabil Bank fulfilled its obligation by paying the guaranteed amount to Trishuli Hydropower Company Limited. Consequently, Nabil Bank initiated legal proceedings against China Everbright Bank for not honoring the counter guarantee. The initial court ruling was in favor of Nabil Bank.
The Shuifa ANHE Group Co Ltd appealed the decision, but the Higher People’s Court upheld the original ruling on September 23, 2025, again siding with Nabil Bank.
The contract between Trishuli Hydropower Company Limited and Shuifa ANHE Group Co Ltd was originally signed on March 4, 2018, with a three-year completion timeline. However, the contractor’s inability to fulfill the agreement on time led to the contract’s termination and the forfeiture of the bank guarantees.