The Singapore International Commercial Court, in its August 26 judgment, dismissed Tata Power’s challenge to the arbitral awards issued on July 1 and August 27, 2025, in proceedings initiated by Kleros against the company. Tata Power said it has 28 days from August 26 to approach the Singapore Court of Appeal and will file an appeal within this period.
The company had also challenged a June 5, 2025 decision of the Singapore International Arbitration Centre (SIAC) Court that rejected its challenge to the appointment of two arbitrators who issued the majority award.
The Singapore International Commercial Court held that the majority did not breach natural justice or the fair hearing rule in arriving at the final award.
The dispute dates back to 2013, when Kleros approached Tata Power with a proposal to jointly bid for a coal deposit in Russia. The two parties subsequently entered into a non-disclosure agreement (NDA), under which confidential information relating to the project was shared.
The relationship began to deteriorate in 2015 amid disagreements over the proposed project’s ownership structure and who would lead the bid. The relationship eventually ended in 2016.
Kleros later alleged that Tata Power had breached its confidentiality and non-circumvention obligations by using information shared under the NDA and excluding Kleros from the project.
Kleros did not submit a bid for the Russian mining licence in the December 2017 federal auction and subsequently wound down its operations in the country.
After the NDA expired on September 15, 2017, Tata Power, through its Russian subsidiary FENR, submitted a bid for the mining licence. FENR was awarded the licence in January 2018 for a 25-year term. Tata Power later determined that the project was not viable and surrendered the licence.
Kleros commenced arbitration proceedings against Tata Power on November 30, 2020, arguing that Tata Power’s actions had deprived it of the opportunity to invest in and profit from the project.
In July 2025, the arbitral tribunal awarded Kleros $490.32 million in damages. The award was based on Kleros’ loss of opportunity to participate in the project, with the tribunal valuing the project at around $1.02 billion and assessing Kleros’ loss of chance at 60%.
Tata Power was also ordered to pay Kleros’ legal costs and expenses of S$8.29 million, along with simple interest of 5.33% per annum on the damages and costs.
The Singapore court rejected Tata Power’s arguments that the tribunal had failed to determine essential issues or breached natural justice and agreed arbitral procedures. It also found no basis for the company’s claims of apparent bias against members of the tribunal.
The court consequently dismissed Tata Power’s challenges and ordered the company to pay Kleros’ costs, with the amount yet to be determined.
Shares of Tata Power Company were trading over 4% down on Thursday at ₹349.3, extending the stock’s year-to-date losses to nearly 9%. The stock has delivered a negative 6% return over the last 12 months.
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