India will file an appeal against the Italian Court's order for encashment of bank guarantees worth over 2360 crore rupees of Agusta Westland as part of penalties in chopper deal.

A Defence Ministry statement issued in New Delhi today said, India will vigorously pursue all options for encashment of bank guarantees.

The penalties were imposed on the Italian company after scrapping of 3,600 crore rupees deal for procurement of 12 VVIP helicopters.

An Italian court in Milan yesterday accepted a plea by AgustaWestland's parent company Finmecannica to stop India from encashing bank guarantees.

India terminated the deal on the 1st of January this year for procuring helicopters on allegations of payment of kickbacks and involvement of middlemen in the acquisition process by the Anglo-Italian firm.

After the cancellation of the contract, India had also decided to go in for arbitration with the Anglo-Italian firm and the two sides have nominated their members in this regard.