Singur Plant: WBIDC Moves Calcutta HC Challenging Arbitration Award To Tata Motors

The applications filed by WBIDC for a stay on the award and an appeal challenging the arbitration verdict were presented before Justice Mousumi Bhattacharya's court for hearing on Monday

The compensation is in respect to Tata Motor's claim of compensation from WBIDC under various heads, including the loss of capital investments with regard to the automobile manufacturing unit in Singur.

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The West Bengal Industrial Development Corporation (WBIDC) has moved Calcutta High Court on Monday, contesting an arbitration award granted to Tata Motors Ltd concerning losses incurred in investments made in the abandoned car manufacturing plant at Singur in West Bengal.

The applications filed by WBIDC for a stay on the award and an appeal challenging the arbitration verdict were presented before Justice Mousumi Bhattacharya's court for hearing on Monday. Both matters were released and are scheduled to be placed before the chief justice of the high court for fresh listing before another bench.

WBIDC, in its appeal, argued that it was denied equal opportunity during the hearings before the arbitral tribunal. The corporation contended that it was not afforded a full opportunity to present its case before the three-member tribunal.

The controversy surrounding the Singur plant emerged in 2008 when Tata Motors, intending to manufacture 'Nano' cars, faced opposition primarily from the Trinamool Congress, led by then opposition leader Mamata Banerjee. The Opposition alleged forcible acquisition of farmland, leading to Tata Motors announcing its withdrawal from the Singur project.

A regulatory filing made by Tata Motors last year stated, "In respect of arbitration proceedings between Tata Motors Limited (TML) and WBIDC, this is to inform that the aforesaid pending arbitral proceedings before a three-member Arbitral Tribunal has now been finally disposed of in favour of TML on October 30, 2023, and the company has been held to recover Rs 765.78 crore plus interest from WBIDC."

According to a report, the compensation is in respect to Tata Motor's claim of compensation from WBIDC under various heads, including the loss of capital investments with regard to the automobile manufacturing facility in Singur.