Lanco Infratech Ltd (LITL), diversified infrastructure group, on Monday said that it will pay 7.5 million Australian dollars (about Rs.42 crore) to settle the protracted 3.5 billion Australian dollar (about Rs.19,000 crore) legal battle with Australia’s Perdaman Chemicals over coal supply issues.
“This settlement was reached pursuant to the rules of Supreme Court of Western Australia, which allows for early and cost effective resolution of such claims,” a statement issued by Lanco said.
“Lanco has always maintained that Perdaman’s action was baseless and without any merit. If allowed to continue, this case would have taken another 12 to 14 months for the trial and judgment, resulting in significant legal costs and loss of management time.
"The purpose behind making this nominal offer was to put an end to this litigation now and move forward with our mine expansion plans,” it said.