Punj Lloyd’s wholly-owned UK subsidiary Simon Carves Limited (SCL) had commenced adjudication proceedings against SABIC Petrochemicals UK (SABIC) in January. The proceedings were ultimately aimed at seeking restitution of 28.5 million pounds sterling or Rs 220 crore through the UK courts.
However, today, the UK adjudicator has ruled in favour of SABIC and has thereby moved on to the next stage of dispute resolution.
Commenting on the same, Atul Punj, Chairman of Punj Lloyd, said the company will be appealing this case to a higher authority in the SABIC case. But the legal process will take a year or 12-14 months, he added.
Punj feels there is some contradiction in the ruling that has come.
He said the ruling will have negative impact on the company’s net profits, but will not impact the business.
“We are taking some rationalization measures at SCL and the other projects of SCL are on stream,” Punj added.
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