ANZ Bank faces a $2.5 billion-plus claim from the billionaire founders of Burrup Fertiliser Pankaj and Radhikha Oswal after the bank allegedly forced the sale of their business for far less than they say it was worth and while they were under "duress".
Lawyer for the couple, Tony Bannon SC, told the Supreme Court of Victoria that ANZ Bank and receiver PPB worked together to ensure the business was sold for a base price to another of Burrup's shareholders, Norwegian group Yara, rather than for the highest price.
"The receivers made it clear to anyone who would listen that their sole purpose was to close out the debt," Mr Bannon said.
"Not only is it a breach of selling any asset rule 101 as it turns out it is the breach of the duty of the receiver," Mr Bannon said.
The flashy entrepreneur and his socialite wife are suing the ANZ and PPB over the sale of the Western Australian fertiliser company for what they allege is a knock down price of $US560 million in 2011.
Mr Bannon's comments were the opening salvo in the trail before Judge Julie Dodds-Streeton which is expected to take three months.
The Oswals allege ANZ and PPB undervalued their share of the plant by $1.5 billion.
They argue that their stake in Burrup was sold on the cheap to cover a $900 million loan from ANZ instead of for the $2.5 billion they say it was worth.
'No coincidence'
Mr Bannon said that by disclosing the amount of debt the Oswals had and the costs of the receivers and working capital requirements for the plant to potential bidders, PPB and ANZ created a situation where any potential buyer knew the base price ANZ was seeking.
"It was no coincidence that the sale price ended up at $US560 million.... ANZ was telling Yara how much it wanted (for the shares)," Mr Bannon said.
Mr Bannon also told the Supreme Court of Victoria heard on Monday that Mr Oswal signed a $900 million guarantee over his and his wife's shares "under duress".
Mr Oswal alleged a senior ANZ Bank executive placed the flashy tycoon in a headlock and said he would destroy him if he did not sign guarantees for the $900 million in debt.
ANZ called in receivers from PPB to the couple's company Burrup Fertilisers, which had a large scale operation in Western Australia's Pilbara in 2010.
The couple's shares in Burrup were sold to Norwegian company Yara and New York-listed Apache Corp.
Questions over spending, tax
Separately, Mr Oswal is alleged to have taken more than $100 million for personal use from entities associated with the fertiliser plant and his wife has been accused of dodging a $186 million tax bill.
After arriving in Perth in 2005 to much fanfare, the billionaire entrepreneur and his wife built Burrup into a major force in the Western Australian mining scene.
They ploughed millions more into their expansive residence in Perth's ritzy suburb Peppermint Grove, dubbed the "Taj on the Swan" by locals.
The Oswals left Perth in 2010 after receivers were appointed, abandoning their half finished pile which this year the local council ordered be demolished.
They also left behind a tangle of legal battles.
The couple, who have been based in Dubai since leaving Perth, deny any wrongdoing.
The guarantees later allowed ANZ to seize the Oswals' shares in Burrup when the company went south during the financial crisis.
The trial continues.
