LI Network
Published on: October 31, 2023 at 00:01 IST
Tata Motors, a prominent name in the automotive industry, announced a significant victory on Monday, confirming their successful pursuit of an arbitral award totaling Rs 766 crore.
This substantial award serves as compensation for their investments in the now-defunct Singur plant, initially designated for the production of Tata Nano cars.
The origin of this arbitration traces back to a longstanding dispute between Tata Motors Limited (TML) and the West Bengal Industrial Development Corporation Limited (WBIDC).
The conflict revolved around TML’s claim for compensation from WBIDC, encompassing a range of capital investments linked to the automobile manufacturing facility in Singur, West Bengal. After years of ongoing arbitration proceedings, a unanimous award was finally issued on October 30, 2023, decidedly in favor of Tata Motors.
In a statement, Tata Motors highlighted, “In respect of the arbitration proceedings between Tata Motors Limited (‘TML’) and West Bengal Industrial Development Corporation Limited (‘WBIDC’), in relation to TML’s claim of compensation from WBIDC under various heads, on account of the loss of capital investments, with regard to the automobile manufacturing facility at Singur (West Bengal), this is to inform that the aforesaid pending Arbitral proceedings before a three-member Arbitral Tribunal has now been finally disposed of by a unanimous Award dated October 30, 2023 in favor of TML.”
The award specifies that TML is entitled to recover a sum of Rs. 765.78 crore, along with interest at a rate of 11% per annum, starting from September 1, 2016, until the complete recovery from WBIDC is achieved.
Furthermore, the award decrees an additional recovery of Rs. 1 crore towards the cost of the proceedings. This verdict signifies a significant milestone for Tata Motors, not only validating the legitimacy of their claim but also carrying substantial financial implications that will bolster the company’s ongoing operations and future endeavors.
The successful outcome of this arbitration undoubtedly serves as a testament to Tata Motors’ commitment to safeguarding their investments and interests, ultimately ensuring justice is served in the Singur plant case.
