London, March 5: Lakshmi Mittal and Moni Varma, two of Britain’s most respected Indian businessmen, who were due to begin a high court battle in London today over a Nigerian oil deal, instead settled their differences at the weekend over a cup of tea.
Varma told The Telegraph: “It’s been amicably settled. Am I happy? I am happy. But I don’t want to rub anyone’s nose in it. Let Mittal’s wealth grow four times.”
A joint statement issued today by the warring sides gave little away: “Moni Varma and Lakshmi Mittal are pleased to announce that their differences have been resolved. They shall be making no further comment.”
Mittal, who is the biggest steelmaker in the world as chairman and CEO of ArcelorMittal, had his family fortune valued at £13.5bn last year though the price of steel has come down since then.
While he is number one in the Asian Rich List (as well as the British one), Varma, often referred to as the “Basmati Baron” as an importer of rice, is ranked 50th with £84m. His firm is called Veetee Rice.
Journalists turned up for the start of the trial in Court No. 19 in the Rolls Building in the high court where Manmohan Chander Varma (better known as Moni Varma) was due to start proceedings against Lakshmi Niwas Mittal. Justice Burton was due to preside over the case.But the court was locked and there was not a barrister to be seen. This was extremely disappointing to British journalists who had been relishing the prospect of the ways of the Indian super rich being laid bare. A clerk informed the dejected journalists: “The case has been removed from the lists. They reached an out-of-court settlement.” The legal battle was listed as “one to watch” by The Lawyer magazine.
Mittal, who funded the ArcelorMittal Orbit at the Olympics last summer, has become a household name in Britain because of his sponsorship of the £19m sculpture at the behest of mayor Boris Johnson.
For Varma to challenge Mittal might have appeared like David taking on Goliath but the former has been pursuing his claim doggedly for six years.
Varma claimed he had brokered an oil deal between Olusegun Obasanjo, Nigeria’s former President, and Mittal. These involved two oil exploration licences for which Varma expected a success fee between 5 per cent and 15 per cent. The two men, who had previously been on cordial terms, went to Nigeria in Mittal’s private jet. In the end there was no oil deal.
It is understood that friends urged both sides to settle. If the respective barristers had got their claws into the claimant and the defendant, there was a high risk their reputations would be shredded. The settlement is being kept confidential, though one source suggested to The Telegraph it could be anywhere between $15m and $25m.
