New Delhi: Diversified group Lanco Infratech has said there is no "great possibility" of an out-of-court settlement in the AUD 3.5 billion legal battle with Australia's Perdaman Industries.
Perdaman last year had filed AUD 3.5 billion lawsuit against Lanco in Australia, alleging non-compliance with fuel supply pact by Griffin Coal for its upcoming urea plant in Western Australia.
Lanco had acquired Griffin Coal for about AUD 730 million in March 2011.
"We don't see a great possibility of an out-of-court settlement with Perdaman Industries," Lanco CEO (Business Development) Nagaprasad Kandimalla said.
In Australia, mediation is generally part of the legal process.
Meanwhile, Kandimalla said that Lanco has also filed a lawsuit against Perdaman for about AUD 250 million, which is also tagged with the main case.
Escalating its battle, Perdaman recently approached an Australian court against ICICI Bank -- which had led a syndicate of lenders that had financed Lanco's acquisition of Griffin.
Last Thursday, Lanco had said that Perdaman's move against ICICI Bank was baseless and that the lender does not have any contractual relationship with the Australian company.
However, Perdaman Industries Chairman & Managing Director Vikas Rambal had said that "Lanco's statement that Perdaman's claim is baseless can only be regarded as grossly misleading".
An ICICI Bank spokesperson had said the lender had no comment to offer.
First Published: Sunday, January 13, 2013, 20:01