Allied Silica Drags Tata Chemicals In Dispute Under MCIA

Allied Silica drags Tata Chemicals in dispute under MCIA

Allied Silica Limited (ASL) and its promoter Manmohan Singh Jain have filed a Statement of Claim (SoC) against Tata Chemicals in arbitration proceedings initiated under the Mumbai Centre for International Arbitration (MCIA) norms.

However, to safeguard its interests, Tata Chemicals seeks dismissal of the claim by filing a counter-claim, citing victories in related disputesearlier.

The present dispute arose from a 07 April 2018 Business Transfer Agreement (BTA) between the companies and the promoter. ASL had filed claims against Tata Chemical before the Mumbai bench of the National Company Law Tribunal (NCLT), the National Company Law Appellate Tribunal and the Supreme Court. However, all appeals were rejected and the ruling favored Tata Chemicals.

Terming the claims frivolous, Tata Chemicals is expecting a decision in its favor, stating no dues are payable by it under the agreement. It stated, "Based on the preliminary assessment of the Statement of Claim, and on legal advice, the company disagrees with the disputes and claims by ASL and Jain. We will file applications seeking summary dismissal of the claim.”