A Federal Court judge has found there is a "complete absence" of material to support a claim by fallen fertiliser tycoon Pankaj Oswal that he is owed almost $500 million from his former Burrup Fertilisers empire.
The preliminary assessment of Mr Oswal's claim – which relies on an oral conversation that allegedly occurred more than 10 years ago and was not mentioned in financial reports – is a big blow to the businessman, who used the supposed debt as a reason for taking money out of the company he once part-owned, The Australian Financial Review reports
"I accept that it is not open for the court to form any final views as to the strength or merits of Mr Oswal's cross-claim," the judge, Neil McKerracher, wrote in his Federal Court judgement.
"However, it would be completely inappropriate to totally disregard the complete absence of any reference to anything remotely resembling Mr Oswal's claim in the official and formal documents to which I have referred. Most, if not all, were signed by Mr Oswal."
The judge's comments are part of a complicated web of litigation between the Indian family and local financiers, receivers and the Tax Office.
Justice McKerracher made a preliminary assessment of Mr Oswal's claims when deciding to make the businessman put up $100,000 in security for legal costs, should receivers prove their claim that the businessman stripped more than $200 million from Burrup.
The judge noted that Mr Oswal's $US490 million cross-claim against the company, linked to claims that he personally financed cost overruns at the fertiliser plant, was not mentioned in financial reports, nor when a prospectus was lodged with the corporate regulator in 2008. The float attempt was ultimately unsuccessful.
Justice McKerracher said that, in Mr Oswal's defence, he could not yet be expected to file "particularly detailed affidavit evidence".
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