ANZ exec denies putting Oswal in headlock

A senior ANZ executive denies putting Indian businessman Pankaj Oswal in a headlock or threatening his wife that she too could end up in jail for fraud, a trial has heard.

Former ANZ chief risk officer Chris Page denies physically assaulting Mr Oswal by putting him in "an aggressive sort of headlock" when the pair was alone during an impasse in negotiations in December 2009, the Victorian Supreme Court heard on Thursday.

Mrs Oswal's barrister Garry Rich SC has told the court Mr Page had his arm around Mr Oswal's neck in what a lawyer who walked in on the pair described as "not a friendly gesture".

Mr Oswal alleges Mr Page told him: "Bloody well sign the documents or we will destroy you."

Mr Page will say there was no verbal altercation or physical contact of the kind alleged, ANZ barrister Matthew Connock QC said.

Mr Rich has said the ANZ told Radhika Oswal her husband had admitted falsifying security documents and could go to jail for fraud if she did not cover almost $US1 billion in debts.

Mr Rich said, during a private discussion with the couple, Mr Page told Mrs Oswal she needed to do what the bank wanted or else there would be consequences.

Mr Page also told Mrs Oswal some in the bank believed she was involved and she could go to jail as well, in an attempt to intimidate or scare her, Mr Rich said.

Mr Connock said Mr Page will say there was no threatening conduct of the kind alleged.

After the meetings, Mrs Oswal put her shares in the couple's Australian fertiliser business up as security for $US568 million.

In an email to then ANZ CEO Michael Smith after reaching an agreement, Mr Page described the Oswals as devious and unsavoury characters and "Indians with no moral compass".

Mr Oswal's barrister Tony Bannon SC has said it was racial bigotry and demonstrated the personal animus Mr Page felt towards the Oswals.

Mr Connock agreed with Justice Julie Dodds-Streeton that the email did not express a positive relationship, but noted Mr Oswal and Mr Page had lunch together in Perth not long afterwards.

"It had been an intense negotiation," Mr Connock said.

"The evidence will show that there was no sign of this process being motivated by any animus towards Pankaj Oswal or Radhika Oswal."

The bank denies pressuring Mrs Oswal into signing the guarantees, a year before it appointed receivers in December 2010.

The Oswals want up to $2.5 billion from the ANZ and receivers, arguing their 65 per cent stake in Burrup Holdings was sold for less than half its true value in 2012.