Aussie Court consolidates Perdaman's claims against Lanco

Multinational company Perdaman Industries, locked in a $3.4 billion legal battle with Lanco Infratech, today said the Australian Supreme Court has consolidated all the claims against the Indian group into a single proceeding.

Even though Perdaman claimed that the move would make their case seeking $3.38 billion in damages for not honouring terminating coal supply pact "stronger", Lanco said the development "has no impact on the case".

Lanco had snapped up Australia-based Griffin Coal, which had a coal supply pact with Perdaman for AUD 730 million in March.

"The effect of the consolidation now brings into the one proceedings Perdaman's claims against the Griffin Coal Mining Company, Lanco Infratech, Lanco Infratech's two special subsidiary companies Lanco Resources International Pte Ltd (Singapore) and Lanco Australia Pty Ltd.

"In addition the action consolidates the claims against senior Lanco executives including Langadapati Madhusudhan Rao, Manoj Agarwal, Kandimalla K V Naga Prasad, S Amarendran and Russell Conley," Perdaman said in a statement today.

The consolidation of claims was directed by Chief Justice of the Supreme Court of Western Australia Wayne Martin during a hearing yesterday.

"Our case has become stronger with the direction (consolidation," Perdaman Chemicals and Fertilisers Director (Corporate) Andreas Walewskar told PTI.

When contacted, Lanco Infratech CEO (Business Development) Nagaprasad Kandimalla said the consolidation of Federal and Supreme Court action was "agreed by us to streamline these proceedings".
    
"This is nothing new and has no impact on the case. Perdaman is trying to highlight issues of no significance because it realises its legal claims have no merit at all," he noted.
    
Perdaman Chemicals and Fertilisers, whose parent company is Perdaman Industries, had filed the AUD 3.5 billion-lawsuit.
    
According to Perdaman statement, the new consolidated action in the Supreme Court includes Perdaman's Federal Court claims that Lanco Infratech and others wrongly procured Griffin (in breach of the Perdaman Coal Supply Agreement) to purport to terminate the CSA.
    
"Further, the conduct of Lanco Singapore and Lanco Australia in procuring Griffin to enter into a Negative Pledge Deed to support the Lanco Group's borrowings from ICICI Bank Limited of $800 million was conduct in breach of the CSA with Perdaman," it added.
    
Lanco has maintained that claims made by Perdaman are baseless.
    
The case is expected to go on trial in April, 2012.
    
As per the contract with Griffin, coal is to be supplied to Perdaman's upcoming Collie urea project over a period of 25 years.