Alpha Real Trust has been awarded the equivalent of £9.2m by the International Chamber of Commerce in its dispute with its joint venture partner, Logix Group, over Galaxia – the development that they were supposed to be working on together in an 11.2 acre Special Economic Zone, in NOIDA, the National Capital Region, India.
The tribunal, by a majority, decreed that Logix and its principals had breached the Terms of the Shareholders Agreement and has awarded the Company:
Return of its entire capital invested of INR 450 Million (equivalent to GBP4.9m using an exchange rate of 92.25 as at 27 January 2015) along with interest @ 18% p.a from 31 January 2011 to 20 January 2015 and all costs incurred towards the Arbitration.
The total award amounts to £9.2 million based on current exchange rates. Additionally, a further 15% p.a interest on all sums was awarded to the Company from 20 January 2015 until the actual date of payment by Logix.
The Arbitral Tribunal has also ruled that the Company has no obligation or liability to fund the outstanding NOIDA lease rent under the Shareholders Agreement.
Under Indian law Logix have 90 days to pay the Award or appeal. The Company has been awarded by the Indian courts a charge over the private residence of the principals of Logix, Shakti Nath, Meena Nath and Vikram Nath.
The directors are holding the value of Galaxia at £4.9m for now.
ARTL : Alpha Real Trust wins arbitration