Mumbai: Lanco Infratech considers the claim of contractual breach made by Australia-based Perdaman Industries in a A$3.5 billion ($3.7 billion) lawsuit “baseless”, a senior official told a TV channel on Monday.
Shares in Lanco Infratech fell on Friday after a news report by Press Trust of India said Perdaman Industries sued Lanco in the Supreme Court of Western Australia for a breach of coal supply agreement.
Lanco’s chief financial officer J. Suresh Kumar denied any breach of the coal supply agreement.
“Clearly from our position it is an absolute baseless claim ... We are extremely confident of our position under the contract and will be able to vigorously defend this case,” he told television channel CNBC TV18.
“This is a contract for supply of coal in the future, it’s not an existing coal supply contract,” Kumar said.
Hyderabad-based Lanco said in an exchange statement released on Saturday that Perdaman has not filed a statement of claim in the court and it does not know how Perdaman arrived at a damages claim of A$3.5 billion.
Shares in Lanco, valued by the market at $1.24 billion, gained as much as 7.12% early on Monday and were trading 4.97 percent higher at Rs 24.30 at 12:18pm, while the benchmark index was up 0.72 percent . The shares had fallen as much as 14 percent in the last hour of trading on Friday.