A day after Lanco Infratech announced the formal termination of coal supply pact with the company, Australia's Perdaman Industries today termed the Indian group's move as "wrongful".
Amid the two companies locked in a AUD 3.5 billion legal tussle in Australia, Griffin Coal -- a subsidiary of Lanco -- has terminated the coal supply agreement (CSA) with Perdaman Chemicals and Fertilisers.
"Immediately upon receipt of the purported notice of termination Perdaman gave notice to Griffin Coal and Lanco that the purported termination was wrongful and a further breach of the Coal Supply Agreement (CSA) by Griffin," Perdaman said in a statement.
Lanco yesterday said it terminated the CSA with Perdaman as the company failed to achieve financial closure for the latter's upcoming Collie urea plant in Western Australia.
Griffin Coal, which was snapped up by Lanco for 730 million Australian dollars (AUD) in March, is to supply about 2.7 million tonnes of coal annually to the urea plant.
"Perdaman will vigorously pursue this case through the Supreme Court of Western Australia against Lanco and Griffin and hold them accountable for their action and conduct," Perdaman Chemicals and Fertilisers Pty Ltd CMD Vikas Rambal told PTI.
Perdaman noted the company has reserved all of its rights in relation to Griffin's unlawful conduct.
On August 28, Perdaman said its solicitors gave formal warning that "Griffin had no legal power to purport to terminate the contract".
As per the CSA, which was inked between Australia-based Griffin Coal and Perdaman Industries, the financial closure was to be achieved by August 29.
Lanco Infratech CEO (Business Development) Nagaprasad Kandimalla had said that Griffin Coal has the right to terminate the CSA if Perdaman failed to achieve financial closure.
Top Section
Explore Business Standard