Lanco Infratech to face $3.7 billion lawsuit in Australia's Supreme Court

Posted By: Religare
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Lanco to face $3.7 billion lawsuit
Lanco Infratech has termed the lawsuit by Australian company Perdaman Industries for breach of contract baseless. The Australian company has accused the Indian company for breach in coal supply agreement contract and has sought compensation of A$3.7 billion.

Perdaman had signed a 25-year deal with Griffin Coal, acquired by Lanco Infratech last year, for supply of 2.8 million tonnes coal every year. The coal was for Perdaman's upcoming A$3.8 billion fertiliser and urea project. The Australian Supreme Court has admitted the AUD 3.7 billion lawsuit after evaluating prima facie evidence against the Indian company.

According to Lanco Infratech, Perdaman so far has not filed a statement of claim in the Supreme Court, explaining the basis for its claim and in particular, how it arrived at a damages claim of that amount. However, the company is ready to comply with the tenets of its coal supply agreement with the multi-national firm.

Perdaman has accused that because of Lanco's conduct under the Australian consumer act the company is facing road blocks with regards to the works of the proposed $3.8 billion urea plant and has also suffered damages. Griffin coal mine has estimated resource base of over 1 billion tonnes of coal and the commitment to supply to Perdaman is about 2.75 million tonnes per annum.

Read more about: bse, lanco infratech, nse, commodities, mines
Story first published: Tuesday, June 28, 2011, 9:31 [IST]
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