Tata Power shares losses amid company losses USD 490 million legal battle against Kleros Capital Partners
Shares of Tata Power Company Ltd. have plunged over by 3.41% as the company has lost around USD 490 million in a legal battle against the investment firm Kleros Capital Partners. The company is going to appeal to Singapore’s top court.
On August 26, the Singapore International Commercial Court dismissed Tata Power’s applications to invalidate the arbitral awards issued in 2025 and also rejected the June 2025 decision, which had challenged the decision of the Singapore International Arbitration Centre regarding the appointment of two majority tribunal arbitrators.
In its decision, the SICC found that the tribunal did not violate principles of natural justice or fair hearing rules and dismissed Tata Power’s claims of apparent bias and unaddressed causation, remoteness and mitigation issues. Sources said Tata Power would appeal against the dismissal in the Singapore Court of Appeal within the mandatory 28-day window from August 26, 2023.
Tata Power's dispute with Kleros stems from arbitration proceedings that began in November 2020 over agreements related to a proposed bid for a coal mining project in Russia. Previously, an arbitral tribunal found Tata Power liable for breaching certain non-disclosure agreements as well as its contractual duty of good faith and confidence.
The three-member tribunal awarded Kleros $490.32 million in compensation for the loss of an investment opportunity. The decision was passed with a 2:1 majority, and Tata Power was ordered to pay 5.33 percent annual interest on the amount from November 30, 2020, until payment is made. Tata Power was also ordered to pay certain legal and arbitration costs, and the $490.32 million in interest continues to accrue.
What Next:
Tata Power now has 28 days from the SICC judgment to file an appeal with the Singapore Court of Appeal, and the company has confirmed that it will do so. The company previously claimed that it had legal grounds to challenge the arbitration awards and, based on legal advice, did not include a provision for the potential payment in its financial statements. However, its most recent filing confirms the planned appeal without changing its position.