GMR Infrastructure said on Wednesday that it has got a favourable ruling in the Axis Bank debt case from the Singapore-based International Arbitral Tribunal.
“Maldives airport arbitration tribunal has ruled in favour of GMR in Axis Bank debt case,” the Bangalore-based infrastructure company said in its filing to the exchanges.
GMR Male International Airport (GMIAL), a subsidiary of GMR Infrastructure, had entered into a concession agreement with government of Maldives (GoM) and Maldives Airport Company (MACL) for modernisation and operation of Ibrahim Nasir International Airport (INIA) in 2010. The said concession agreement was unlawfully repudiated by the government of Maldives and Maldives Airport Company on November 29, 2012 alleging that the same was void ab initio and initiated an international arbitration. On June 18, 2014, the International Arbitral Tribunal constituted to adjudicate the matter, with its seat at Singapore, had issued its first part final award saying concession agreement was valid and binding; government of Maldives and Maldives Airports Company had unlawfully repudiated the same and that they are jointly and severally liable in damages to GMIAL for loss caused by such wrongful repudiation.
GMR said by its award dated February 23 (2016), International Arbitral Tribunal has ruled that such damages payable by GoM and MACL to GMIAL will also include all the sums owed by GMIAL to the project lenders Axis Bank Singapore Pte under the facility agreement.
According to the company, quantum assessment of entire damage payable by GoM and MACL is expected to be completed sometime in third quarter of 2016.