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ANZ-NHB dispute in India

Document date:  Thu 05 Feb 1998
Published:  Thu 05 Feb 1998 00:00:00
Document No:  134567
Document part:  A
Market Flag:  N

HOMEX - Melbourne                                                     

ANZ today announced that, following a decision of the Special Court
at Mumbai to set aside an Award in the long-running National Housing
Bank ("NHB") dispute in India, ANZ would exercise its right to appeal
against the decision to the Supreme Court.

The Special Court gave judgement on NHB's challenge to the Arbitration
Award which was made in ANZ's favour by a panel of three eminent
former judges in March 1997.

Because the matter has not been finally resolved the Court ruled that
the moneys (and interest) which are the subject of the dispute can
remain with ANZ.

Counsel has advised ANZ that it has a right of appeal to the Supreme
Court of India and ANZ will exercise that right. ANZ remains
confident as to the ultimate outcome of the dispute.

ANZ's Chief Executive Officer John McFarlane said "Whilst we would
have preferred the resolution of the matter at this juncture we
believe the strength of our position will be ultimately recognised by
the Supreme Court."

The Arbitration was pursuant to an Agreement made by ANZ and NHB in
1992. It was conducted by a panel of three Arbitrators selected by
ANZ and NHB, one of whom was a former Chief Justice of the Supreme
Court of India, one was a former judge of the Supreme Court and one
was a former Chief Justice of the High Court of Tamil Nadu. The Award
on 29 March 1997 dismissed NHB's claim for Rs 506 crores and NHB was
required to repay it to ANZ with interest at 18% from November 1992
to repayment in April 1997.

P Marriott