Lanco's Australian subsidiary wins ruling in Perdaman Chem case
24 December 2012
Lanco Infratech's Australian subsidiary Griffin Coal Mining Company Pty Ltd has won a ruling in its favour in a case filed by Perdaman Chemicals and Fertilisers Pty Ltd in the Supreme Court of Western Australia, the company said in a filing with the stock exchanges.
With the order in its favour, Griffin Coal Mining expects to sign revised coal supply agreement with the Griffin (Bluewaters) Power entities, which are being acquired by Japanese consortium of Sumitomo Corporation and Kansai Electric Power Co.
"The revised coal supply agreement will result in a gain of approximately Australian $150 million, including a substantial upfront payment to Griffin Coal Mining Company," the company quoted L Madhusudhan Rao, executive chairman of Lanco Infratech Ltd, in a statement.
Perdaman Chemicals had filed a case against Lanco and Griffin Coal seeking damages to the tune of $3.2 billion for not complying with the coal supply pact -- inked with Griffin Coal-- for Perdaman's upcoming urea plant in Western Australia. It has also sought an interim stay against the deal with the Japanese buyers.
While the court rejected the plea for an interim stay on the deal, the main case for damages will come up by February-March next.
The Lanco Group has also filed a counter claim for damages on the ground that the petition was vexatious.