In its ruling, the SICC found that the tribunal did not breach principles of natural justice or fair hearing rules, rejecting Tata Power’s arguments regarding apparent bias and unaddressed issues of causation, remoteness, and mitigation. Following the dismissal, Tata Power announced it will file an appeal with the Singapore Court of Appeal within the required 28-day window from August 26, according to a report by CNBC-TV18.
Background of the Dispute
Tata Power’s dispute with Kleros stems from arbitration proceedings that began in November 2020 and relate to agreements connected with a proposed bid for a coal mining project in Russia. An arbitral tribunal had earlier found Tata Power liable for breaches of certain non-disclosure agreements and its contractual duty of good faith and confidence.
The three-member tribunal awarded Kleros $490.32 million in damages for the loss of an investment opportunity. The decision was passed by a 2:1 majority, and Tata Power was also ordered to pay 5.33 per cent annual interest on the amount from November 30, 2020, until the payment is made.
Tata Power was also ordered to cover certain legal and arbitration costs, while the interest on the $490.32 million continues to add to the amount owed.
What happens next?
Tata Power now has 28 days from the SICC judgment to file its appeal with the Singapore Court of Appeal, and the company has confirmed that it intends to do so.
The company had previously maintained that it had legal grounds to challenge the arbitration awards and, based on legal advice, had not made a provision for the potential payment in its financial statements. Its latest filing, however, does not indicate any change to that position beyond confirming the planned appeal.