Lanco's Griffin Coal unit ends litigation with Perdaman

MUMBAI (Reuters) - Australia's Griffin Coal, a unit of Lanco Infratech Ltd , has ended a litigation initiated by Perdaman Chemicals seeking Australian $3.5 billion for breach of a coal supply agreement.

As part of the settlement, Lanco has agreed to pay Perdaman A$7.5 million plus legal costs without admission of any of the allegations of Perdaman, the Indian company said in a statement on Monday.

"The purpose behind making this nominal offer was to put an end to this litigation now and move forward with our mine expansion plans," Lanco said.

Perdaman filed a lawsuit against Lanco in 2011 in the Supreme Court of Western Australia seeking compensation of A$3.5 billion for breach of a coal supply agreement. Lanco had termed Perdaman's claims baseless.

 

($1 = 0.9721 Australian dollars)

(Reporting by Sumeet Chatterjee in MUMBAI; Editing by Sunil Nair)