Polaris settles Bank Artha Graha dispute for $1 million

Our Corporate Bureau
25 August 2004

Chennai: The city-based Polaris Software Lab Limited (Polaris) has finally settled its high profile 20-month dispute with the Jakarta-based Bank Artha Graha. The settlement is to cost Polaris $1 million.

In a statement filed with the Bombay Stock Exchange, Polaris has said that it has "agreed to make full restitution to Bank Artha Graha in the sum of $10,00,000". According to the filing, the Indonesian bank has agreed to return to Polaris all software provided by it under the agreements.

Polaris had earlier received a sum of $6.62 lakh from the bank as a part of a $13-lakh contract. Under the patch up deal, both the parties do not admit any liability. This development puts to an end to the arbitration proceedings in Singapore.

It may be recalled that Polaris and the Bank Artha Graha signed a Letter of Intent (LoI) in January 2001 whereby the former would implement a banking solution. The LoI was followed by a formal agreement in June and August 2002.

Not satisfied with the progress of the software implementation by Polaris, the bank sent its contract termination notice and claimed a refund of monies paid and also damages for breach of contract.

To cut a long story short, following the contract termination Polaris CEO and chairman Arun Jain led a small team to Indonesia to sort out the differences. (See )