Tata Power and Adaro International go for arbitration

20 Sep 2024 , 07:32 PM

Tata Power Company Ltd (TPCL) is involved in a legal dispute over a coal supply arrangement with Adaro International (Singapore) Pte. Ltd. The agreement signed in August 2020 for the Trombay power plant.

The dispute has been escalated to the International Court of Arbitration under the International Chambers of Commerce (ICC ICA), with both parties making significant claims against one other.

Adaro, citing a breach of contract by TPCL, has filed for arbitration with a claim of $106 million. In response, Tata Power has filed counterclaims totalling $229.947 million for Adaro’s failure to meet its duties under the coal delivery agreement.

During the performance of the agreement, disagreements emerged between the parties. Adaro sent a notification alleging a breach by TPCL, which was followed by a request for arbitration with an alleged claim of $106 million. TPCL retaliated by submitting counter-claims of $229.947 million for non-supply under the agreement, according to a stock exchange filing.

Although both parties attempted to resolve the dispute peacefully, they have agreed to proceed with the arbitration process. The case is still in its early stages, and the arbitral panel has yet to be formed.

The appointment of party-nominated arbitrators is still seeking confirmation by the ICC ICA. Once verified, the process for appointing the presiding arbitrator will begin.

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