Allied Silica Limited (ASL) and its Promoter Manmohan Singh Jain have filed a Statement of Claim against Tata Chemicals in arbitration proceedings initiated under the rules of the Mumbai Centre for International Arbitration.
The present dispute arises out of a Business Transfer Agreement dated April 7, 2018 (BTA) executed between ASL, ASL’s promoters and the Company.
ASL by its Statement of Claim has alleged a breach of contract on part of the Company and made a consolidated claim of ₹ 908 crore against the Company.
ASL had previously for the same disputes filed claims against the Company before the National Company Law Tribunal, Mumbai (NCLT) which was rejected by the NCLT and ruled in favour of the Company.
The Appeals filed by ASL before the National Company Law Appellate Tribunal and the Hon’ble Supreme Court were also rejected and Orders were passed in favour of the Company.
Based on the preliminary assessment of the dispute, frivolous claims, prevailing law and advice from counsel, the Company reasonably expects a favourable outcome in the matter and does not believe that any dues are payable by the Company under the BTA.
“The Company, based on its preliminary assessment of the Statement of Claim, and on legal advice received, disagrees with the disputes raised and claims made by ASL and Jain in the Statement of Claim and will be filing appropriate applications seeking summary dismissal of the claim,” Tata Chemical said in an exchange filing.
The Company is also preferring a counter-claim and will undertake such actions, as may be required to safeguard its interests.
