The Supreme Court of Western Australia has ruled in favour of Griffin Coal Mining Company PTY Ltd., a subsidiary of Lanco Infratech Ltd, in a case filed by Perdaman Chemicals and Fertilizers Pty Ltd.
The order paves the way for signing a revised coal supply agreement with the Griffin (Bluewaters) Power entities which are in the process of being acquired by Japanese consortium of Sumitomo Corporation and Kansai Electric Power Co.
Diversified infrastructure conglomerate Lanco Infratech today informed the stock exchanges that the Western Australian Supreme Court has rejected the contention of Perdaman Chemicals.
L. Madhusudhan Rao, Executive Chairman, Lanco Infratech Ltd, in a statement said, "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 power plant associated with the Griffin Coal mine is being sold to the Japanese consortium and a new coal supply agreement was to be signed. However, Perdaman Chemicals, which had filed a case for damages ($3.2 billion) had sought interim stay against a deal with the Japanese buyers.
However, the court rejected this plea and the main case for damages will come up by February-March next. It relates to damages lodged by Perdaman against Lanco Griffin. The Lanco Group has filed a counter claim for damages on the ground that the petition was vexatious.
Nagprasad Kandimalla, Chief Executive Officer, Business Development, Lanco Infratech, told Business Line , "There has been no progress on the Perdaman project and yet a case has been filed against us. We are confident that this will be ruled in our favour, given the facts. In the meantime, this order enables us to sign revised pact coal supply pact."
The Lanco scrip shot up 6.54 per cent and was trading at Rs 13.35 druing the day on the BSE.