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Lanco wins case in Australia contesting deal with Japan group

Source : IANS
Last Updated: Mon, Dec 24, 2012 15:10 hrs

New Delhi, Dec 24 (IANS) The Supreme Court of Western Australia has ruled in favour of a subsidiary of infrastructure major Lanco Infratech in a case filed by Perdaman Chemicals and Fertilizers Pty Ltd.

Lanco Infratech said in a release here Monday that the Western Australian Supreme Court rejected the contention of Perdaman Chemicals against the Lanco subsidiary, Griffin Coal Mining Company 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 the Japanese consortium of Sumitomo Corporation and Kansai Electric Power Co.

L. Madhusudhan Rao, Executive Chairman, Lanco Infratech 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."

Perdaman Chemicals had filed a case against Lanco Grifin for $3.2 billion damages and had sought interim stay against a deal with the Japanese consortium.

The power plant linked with the Griffin Coal mine is being sold to the Japanese buyers and a new coal supply agreement was to be signed.

The Western Australia court has now rejected the Perdaman plea and the main case for damages will come up around February-March 2013. Lanco Group has filed a counter claim for damages on the ground that the petition was vexatious.



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