Brief: Punj Lloyd seeks injunction in Delhi High Court against SABIC UK ruling

Punj Lloyd

16/10/2014 06:59

Oct 16 (Reuters) - Punj Lloyd Ltd  PUJL.NS : 
 * Updates on litigation regarding sabic UK petrochemicals limited 
 * Company has not deposited the decretal amount by or on October 14, 2014 and 
   the appeal stands dismissed on expiry of the said deadline 
 * Filed a suit before the Delhi high court 
 * Says Delhi high court has issued notice to sabic on injunction application 
   and granted sabic four weeks time to file reply 
 * Says matter will now be listed for consideration on February 10, 2015 
 
* Source text: 
 
"Punj Lloyd Ltd. ("the Company") refers to the information provided on May 20, 
2014, wherein the Company informed that its application for leave to appeal 
pending before the Court of Appeals, UK, against the judgement and decree of 
the Technology and Construction Court, UK ('TCC') in favour of SABIC UK 
Petrochemicals Limited ("SABIC") and against the Company had been accepted.  
 
Two out of the three grounds of leave to appeal that were allowed by the Court 
of Appeals, UK would have at the maximum determined the liability of the 
Company to the extent of GBP 2.66 million in addition to legal costs and 
interest. Subsequent to the leave to appeal being granted by the Court of 
Appeals, UK, SABIC filed an application for making the appeal conditional upon 
payment of the decree sum i.e. GBP 16.3 million to SABIC.  
 
The Company submitted to the Court of Appeals that SABIC is not entitled to 
this sum as its appeal is still to be heard and any such condition would stifle 
the appeal and make it onerous for the Company. Despite such objection of the 
Company, the Court of Appeals made the appeal conditional upon payment of GBP 
16.3 million to SABIC by October 14, 2014. The Company has not deposited the 
decretal amount by or on October 14, 2014 and the appeal stands dismissed on 
expiry of the said deadline.  
 
The Company has filed a Suit being C.S.(OS) No. 444 of 2014 before the Delhi 
High Court, seeking inter alia, a declaration in favour of the Company that the 
decree of the TCC is not conclusive under Indian law and is hence incapable of 
being enforced / executed through the Courts in India. This suit is pending 
adjudication. The Company has filed an Application in the aforesaid Suit 
seeking a temporary injunction restraining SABIC from enforcing, relying upon 
or otherwise making any assertion before any Court, Public Authority or Body 
based on the judgment and decree of the TCC, till the final adjudication of the 
Suit.  
 
The Delhi High Court has issued notice to SABIC on this Application and granted 
SABIC four weeks time to file reply. The matter will now be listed for 
consideration on February 10, 2015." 
 
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