Financial Daily from THE HINDU group of publications
Tuesday, Aug 24, 2004
Money & Banking - Software
Polaris, Indonesian bank settle row Firm to pay $1 m; BAG to return software
Mr Arun Jain, Chairman and CEO, Polaris Software Lab
Chennai , Aug. 23
POLARIS Software Lab Ltd and Bank Artha Graha (BAG), Indonesia, have agreed to settle all their disputes and agreed to seek to have police complaints withdrawn.
Polaris has agreed to make full restitution to BAG in the sum of $1 million received and BAG has agreed to return to Polaris all software provided by Polaris to BAG under the agreements without admission of liability by either party and in full and final settlement of all disputes between parties and/or their respective officials, says a Polaris communication to the Bombay Stock Exchange.
It may be recalled that Polaris was appointed in 2001 by BAG to license, customise and implement the BankNow system for the bank.
The appointment was subsequently formalised in various agreements including a letter of intent dated January 31, 2001, a memorandum of understanding dated November 20, 2001, a licence agreement dated June 12, 2002 and an implementation agreement dated August 2, 2003 (the agreements).
The agreements were, for various reasons, not successfully implemented, Polaris said in the communication to the stock exchange.
Following the termination of the licence and implementation agreements by BAG on November 27, 2002, police complaints were filed against Polaris and BAG in Jakarta. BAG commenced arbitration proceedings against Polaris in Singapore on January 23, 2003, and Polaris brought counter-claim against BAG in the arbitration proceedings.
Further, based on a complaint by BAG, Mr Arun Jain, Chairman and CEO, Polaris, was arrested by the Indonesian police in December 2002 and was in custody for over a week. He was later released following intervention by the Union Government.
Both BAG and Polaris have now agreed to settle their differences and/or disputes arising from or in connection with the agreements, as well as the arbitration proceedings, Polaris said in the communication.
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