SOMBA K'E/YELLOWKNIFE
A man who planned to open diamond polishing plants in the city and is being sued by the company that lent him money was a no-show in court.
Thursday was the second day of hearings in NWT Supreme Court on whether the case should end in favour of the lender, Callidus Capital Corp., without a trial.
Callidus filed the lawsuit last year seeking $4.53 million against Deepak International and Deepak Developments, Deepak Kumar, and his wife Ragini Kumar.
Callidus management alleged Deepak failed to live up to the terms of the loan and failed to provide financial information about the businesses, amongst other claims.
Kumar claimed to have $18 million of equipment which he used as security for the loan stored in shipping containers near the future diamond polishing site. As part of the lending process, Callidus sought to inspect the equipment but when containers were opened, the equipment was not there.
Glen Rutland, the lawyer representing Callidus, told the court there was no reason for the case to go to trial because the defendant didn't provide enough evidence.
Kumar's lawyer Douglas McNiven responded that the burden of proof is on Callidus to show evidence the case should not go to trial.
He argued the issue of whether the equipment was ever in the storage containers is irrelevant. "The issue of the equipment is a rabbit trail that we cannot go down," he said.
Yet it's a trail the lawyer and Justice Andrew Maher did go down, resulting in one of several sharp back and forth exchanges between them.
At one point, the judge asked McNiven "why isn't he (Kumar) here?"
McNiven said Kumar could have been there but decided not to attend because he was about to travel to India. The possibility of testifying by phone was ruled out by both sides.
The lawyers continued presenting their sides into Thursday afternoon.
Rutland said he expected the judge to reserve his decision on whether a trial is required.
It was not known at press time when that decision may happen.
McNiven said Kumar is still trying to get his business started and negative press coverage is hurting those efforts.
He called Callidus a "very litigious" company, describing it as a lender of last resort.
