Indian shipping corporation Essar Shipping Limited has won an arbitration case against the Steel Authority of India Limited (SAIL).
In accordance with the ruling, SAIL is requested to pay Rs 323 crore (USD 48 million) in damages to Essar Shipping for termination of contract relating to coal transportation, the Economic Times reports citing company officials.
Namely, under the contract signed in 2007, Essar Shipping was hired to transport 3 million tonnes of cooking coal from Queensland, Australia to Indian ports.
As disclosed, the contract was renegotiated in 2011, only to be terminated shortly after with SAIL resorting to the spot market cargoes.
The National Stock Exchange of India Limited has sought clarification from both Essar and SAIL with respect to recent media report.
“In this regard, exchange have advised the companies to provide clarification/confirmation on the news item in detail including the following: Whether you/company are aware of any information that has not been announced to the exchanges which could explain the aforesaid movement in the trading. The response from the company is awaited,” the exchange said.
Both companies have confirmed the story today, with Essar Shipping saying that they were waiting for “duly stamped copy of the order of the said arbitration award before informing the stock exchanges”.
According to SAIL, the arbitration award against the company worth USD 38 million plus interest has been passed.
“In terms of the award, certain actions are to be taken by both parties for determining the exact sum for stamping the award. However, the award is under examination by lawyers of the company for future course of action to be taken,” the company added.
World Maritime News Staff