Tata Power to appeal after losing $490 million arbitration case
The Singapore International Commercial Court (SICC) has dismissed all applications filed by The Tata Power Company Limited challenging a $490.32 million arbitration award in favour of Kleros Capital Partners Limited, a UK-based investment firm. With interest accruing from November 2020 and legal costs, Tata Power’s total liability has now exceeded $640 million, approximately Rs 6,000 crore.
The court rejected Tata Power’s two core arguments: that the arbitration tribunal had incorrectly calculated damages and that the majority’s decision-making process had breached natural justice. The ruling upholds the awards as final and binding, requiring Tata Power to make payment immediately.
Dispute background
The dispute arose from a proposed coal project in Russia that was never developed. Kleros commenced arbitration against Tata Power at the Singapore International Arbitration Centre (SIAC) in November 2020, alleging breaches of confidentiality and non-circumvention obligations relating to a proposed joint pursuit of the Krutogorovo coal project in Russia.
The three-member tribunal was chaired by Professor Lawrence Boo and included Stuart Isaacs KC and retired Indian Supreme Court judge Amal K. Ganguli. On September 26, 2023, the tribunal unanimously found Tata Power liable, concluding that the company had misused confidential information, deliberately circumvented Kleros, made misleading statements and concealed material facts while pursuing the project independently.
Damages award
On July 1, 2025, the tribunal issued its award on quantum. All three arbitrators agreed that Tata Power was liable for damages, differing only over the methodology and amount.
The majority, comprising Boo and Isaacs, awarded Kleros $490.32 million, together with simple interest of 5.33% per annum from November 30, 2020, until payment. The majority award is final and binding and payable immediately upon release, and is globally enforceable.
Kleros response
Barry Stimpson, Partner at Squire Patton Boggs and Counsel for Kleros, said the judgment fully reinforces the findings in the arbitral awards, which are final and immediately enforceable.
He said Kleros had entered into agreements with Tata Power to jointly develop the Krutogorovo opportunity and had shared confidential information on that basis. The tribunal unanimously found that Tata Power had breached those agreements.
Stimpson added that Tata Power had not paid any part of the award, which now exceeds $640 million and continues to increase each day. Kleros expects Tata Power to honour the awards without further delay, he said.
Tata Power appeal
Tata Power has confirmed that it will appeal the SICC decision to the Singapore Court of Appeal. The company has 28 days from August 26, 2026, to file the appeal.
The latest development follows Tata Power’s earlier disclosures on the arbitration, including announcements dated July 2, 2025, and disclosures in its consolidated financial results for Q2FY26 dated November 11, 2025.
Tata Power had also challenged the SIAC Court’s decision dated June 5, 2025, which rejected the company’s challenge to the appointment of the two arbitrators who issued the majority award.
