Lanco issue: Perdaman drags ICICI Bank to court

Locked in A$3.5 billion legal battle with Lanco, Perdaman Industries has approached a court in Australia against ICICI Bank, a lender to the Indian infrastructure company which termed the move as a "desperate attempt in frustration".

Perdaman last year had filed A$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. Griffin Coal was acquired by Lanco for A$730 million in March, 2011 and a syndicate of lenders led by ICICI Bank financed the acquisition.

Lanco CEO (Business Development) Nagaprasad Kandimalla said Perdaman has filed the case against ICICI Bank at the Federal Court of Western Australia but the same is yet to be

admitted. "The current attempt against ICICI Bank is a desperate attempt of greenmail in frustration and against one of the most reputed institution of India," Kandimalla told PTI from Australia.

When contacted, an ICICI Bank spokesperson said it has no comments to offer. Perdaman Industries CMD Vikas Rambal, in an e-mailed statement, said: "In light of the Western Australia Supreme Court's finding that Perdaman has a good arguable case and that the case should go to trial, Lanco's statement that Perdaman's claim is baseless can only be regarded as grossly misleading."

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