Tata Power Co., one of India’s largest private power producers, has lost its legal challenge in the Singapore International Commercial Court against a $490 million arbitration award stemming from a breach of contract involving a Russian coal asset. According to the court order, the tribunal dismissed Tata Power’s challenge regarding the quantum of damages awarded to investor Kleros Capital Partners, as well as its claim that the majority arbitration ruling constituted a breach of natural justice. The dispute originates from a 2013 proposal where Kleros approached Tata Power to jointly bid on a major Russian coal deposit estimated to hold $1.1 billion in reserves, leading both parties to enter into a non-disclosure agreement effective for four years from September 2013. However, Tata Power subsequently violated the agreement, denying Kleros the opportunity to benefit from the venture, leading to the massive arbitral damages now upheld by the Singapore court.
