Welspun Corp Files Arbitration Claim of USD 35.5–43.5 Million Against Wasco Entities

Welspun Corp Limited has initiated arbitration proceedings seeking damages between USD 35.5 million and USD 43.5 million from Wasco Coatings Limited and Wasco Energy Limited. The claim is being pursued under the Rules of Arbitration of the International Chamber of Commerce (ICC) in London.

Origin of the Dispute

The arbitration relates to a Shareholders Agreement dated August 25, 2015, executed between Welspun Corp and Wasco Energy Limited. The agreement facilitated the establishment of the joint venture entity Welspun Wasco Coatings Private Limited in India. Wasco Coatings Limited later joined the agreement, undertaking obligations on behalf of Wasco Energy.

Key Contractual Clause in Question

Welspun Corp states that the Shareholders Agreement required:

• Notification to Welspun Corp
• An option to acquire 25% shareholding in any new concrete weight coating plant set up in Qatar or specified Middle Eastern regions

According to Welspun Corp’s filing, a new entity engaged in concrete weight coating was incorporated in Qatar around 2019 without issuing the required option notice outlined in the agreement.

Financial Snapshot of Welspun Corp

Recent financial data reflects the following:

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