Perdaman Chemicals and Fertilisers has had an interim victory in its Supreme Court battle with Indian energy giant Lanco Infratech and its subsidiary Griffin Coal, with the court granting a freezing order on Griffin’s assets.
The Supreme Court of Western Australia found this morning that Perdaman had an arguable case for its $3.5 billion claim against Lanco and Griffin, which was launched in July.
The two companies are at loggerheads over a new coal supply agreement, with Perdaman arguing that Lanco had no right to terminate an 25-year agreement in August, which was signed when the company was under control of administrators last year.
In today’s judgement by Chief Justice Wayne Martin, Perdaman was applying for leave to appeal an earlier Supreme Court decision, where the court refused to grant an interlocutory injunction stopping Griffin from entering any charge, pledge or other security without giving Perdaman at least 10 business days’ notice
The court’s judgement rejected Lanco and Griffin’s claims that Perdaman’s case was baseless.
Earlier this year, Justice Andrew Beech ruled against Perdaman’s appeal to freeze Griffin’s assets.
A spokesperson for Griffin Coal said today’s order only related to a “specific and narrow set of circumstances in interim”.
“The requirement for a 10 day notice of intention mirrors the undertaking Griffin has already provided in good faith to Perdaman through the Court,” the spokesperson said.
"We will continue to vigorously defend the allegations made by Perdaman in the main action."
The main court case remains on track for a trial in the first half of next year.
