Singapore Court Upholds $490 Million Award Against Tata Power

The Singapore International Commercial Court upheld a $490 million arbitration award against Tata Power Company Limited, rejecting the company's challenge to the damages. The court found that the Indian power producer violated a non-disclosure agreement regarding a bid for a coal asset in Russia.

The dispute began in 2013 when Kleros Capital Partners proposed a joint bid for a Russian coal deposit. The partnership dissolved in 2016 due to disagreements over ownership and leadership. Kleros subsequently alleged that Tata Power acted in bad faith by using confidential information to secure a mining license independently after the non-disclosure agreement expired, which excluded Kleros from the project.

Although Tata Power eventually surrendered the license after determining the project was unviable, the court dismissed the company's claims that the original award constituted a breach of natural justice. The court maintained the $490 million penalty and imposed additional undecided costs on Tata Power.