(Alliance News) - Alpha Real Trust Ltd on Wednesday said it has secured a favourable ruling from the Supreme Court of India in relation to the company's ongoing Galaxia joint venture dispute.
"The Supreme Court of India has rejected the challenge to the ICC Arbitration award filed by Logix Group and its promoters," the real estate investment trust said.
Alpha Real Trust initiated arbitration proceedings to protect its Galaxia investment, a equally owned joint venture with Logix Group that owns an 11.2 acre development site located in Noida, India.
In January 2015, the International Chamber of Commerce Arbitration ordered Logix to return the entire amount invested by Alpha Real Trust along with interest and costs. Logix subsequently challenged the award at both the Delhi High Court and latterly a Division Bench of the Delhi High Court, however both courts declared in favour of the company and rejected Logix's appeal.
Logix later appealed the dismissal before the Supreme Court of India. The Supreme Court ordered Logix to deposit INR200 million, around GBP2.2 muillion, with the court to partially secure the company's claim. The amount was successfully recovered by Alpha Real Trust.
In February, the Supreme Court upheld the arbitration award in favour of the company and dismissed Logix's appeal. The court also ordered Logix to pay INR860 million to Alpha Real Trust, of which INR292 million is due within 3 months and the balance within 8 months.
Alpha Real Trust said the court has permitted Logix to sell the Galaxia site, which was previously charged in favour of the company, in order to raise capital. The site is currently under offer for INR568 million and these sale proceeds will be deposited with the Supreme Court towards the settlement amount, the company added.
Shares in Alpha Real Trust closed at 208.00 pence each in London on Wednesday, up 0.9%.
By Tapan Panchal; tapanpanchal@alliancenews.com
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