Ann: Arbitration award on pending issues , page-3

A great result.
IRL wins 3 out of the 4 items in this first arbitration settlement. These 4 items were only the small part of the litigation/arbitration,ie. they are items (3) (4) (5) (6) in the Market Update announcement in May. (ie 4 out of 9 issues).

The settlement of the two major cases are yet to be determined ie.
(1). Special Leave Petition filed in Supreme Court of India
An appeal was filed against the judgement of the High Court u/s 37 of the Arbitration and Conciliation Act, 1996 regarding HCL’s treatment of the contract price under the work order as if it was inclusive of taxes and levies. The appeal was admitted in September 2012 by the Appeal Court, hearings took place and a judgement was delivered by the Court wherein it stated that while it did not agree fully with the views of the Arbitrator, the Court would not interfere with the Award and judgement of the trial Court. The judgement of the Appeal Court was reviewed by IRL, and it has filed a Special Leave Petition (SLP) in the Supreme Court on 17.1.2013 challenging the judgement of the Division Bench of the High Court. A preliminary hearing took place on 1.3.2013 in which the Supreme Court ordered to issue notice to HCL to file affidavit of defence by 18.4.2013. However, HCL filed the reply on in the last week of April, 2013. Thereafter, the Court was closed for summer vacation and has opened on 1.7.2013. The SLP has been listed for hearing on 2nd August, 2013

(2). Arbitration on reduction of contract price by HCL
On the basis of guidelines laid-down by the Supreme Court to consider the dispute whereby HCL reduced the contract price of the work order consequent upon reduction in the rate of Excise Duty by the Government of India, the Calcutta High Court has appointed an Arbitrator who held a preliminary sitting of the Arbitration on 15.3.2013 and directed both the parties to complete all the documentation before 22.4.2013 and fixed the sitting for 22.4.2013 for cross examining the witnesses or to open the arguments by the claimant as the case may be. The arbitration is progressing well and HCL will start their counter- submissions from the 16th July, 2013.

Amounts claimed for (1) A$6.50 Million (2) A$3.38 million

Items (7) (8) (9) total A$1.2 million

The result from this settlement will result in a higher income for IRL going forward.