L&T files for arbitration proceedings against Zuari Cement, India

L&T files for arbitration proceedings against Zuari Cement, India
Published: 06 July 2012


Engineering and construction company Larsen & Toubro (L&T) has filed for arbitration proceedings against Zuari Cement, a fully-owned subsidiary of Italcementi, to claim INR188.53 crore in alleged unpaid bills and payment delays, The Indian Express reports

"They haven't paid us for the INR269.74 crore civil construction work to build a cement plant in Yerraguntla, Andhra Pradesh, and we have started arbitration proceedings against them," K Jagannathan, legal head at L&T's engineering and construction division, said. "They encashed our INR15.80 crore performance guarantees in spite of their dues to us."

A three-member arbitration panel will hear the case, which may take around a year to conclude.

L&T ECC took Zuari Cement to court after claiming it failed to repay INR31.53 crore outstanding dues to build a 5500tpd cement plant. The rest of the claim is for alleged penalties for delays and encashing the guarantee.