The Singapore International Commercial Court (SICC) has granted enforcement orders authorising the Sheriff of the Singapore courts to seize and sell shares held by Tata Power in two of its Singapore-based subsidiaries, Bhira Investments and Tata Power International. The orders are directed towards recovering dues arising from a final arbitration award in favour of Kleros Capital Partners, a British Virgin Islands-incorporated resource and infrastructure investment firm, which now exceeds $650 million inclusive of interest and costs.
The dispute originates from agreements executed in 2013 and 2014 between Kleros and Tata Power for the joint exploration and development of the Krutogorovo coal deposit in Russia's Kamchatka region. Kleros alleged that Tata Power misused confidential information obtained under those agreements to pursue the coal project independently, effectively circumventing its partner. Arbitration proceedings were commenced under the Singapore International Arbitration Centre (SIAC) in November 2020.
In September 2023, a three-member tribunal unanimously ruled that Tata Power had breached its contractual obligations by misusing confidential information and concealing material facts while pursuing the project on its own. A final award rendered in July 2025 quantified damages at $490 million. With accruing interest, which Kleros states runs at approximately $71,600 per day, and legal costs, the total enforceable claim has surpassed $650 million.
What enforcement powers did the SICC grant against Tata Power?
The SICC authorised the Sheriff to seize and sell Tata Power's shareholdings in Bhira Investments and Tata Power International. Bhira Investments holds Tata Power's Indonesian coal mining interests, including a 30 percent stake in PT Kaltim Prima Coal, while Tata Power International functions as the group's overseas investment holding vehicle.
Tata Power had challenged the arbitration awards before the SICC, including objections concerning the appointment of two arbitrators who formed the majority in the final award. In August 2025, the SICC dismissed all challenges, holding that there had been no breach of natural justice or the fair hearing rule in the tribunal's conduct. The court ruled that the awards are final, binding and immediately enforceable under Singapore law.
Although Tata Power has appealed the SICC's August dismissal to the Singapore Court of Appeal, the company has not sought a stay of enforcement proceedings. Kleros noted that under Singapore law, the pendency of an appeal does not automatically suspend enforcement. Consequently, the enforcement orders remain operative pending the appellate outcome.
Stage | Forum | Outcome |
|---|---|---|
Arbitration (SIAC) | Three-member Tribunal | Unanimous finding of breach (Sept 2023); $490 Mn damages awarded (July 2025) |
Enforcement Challenge | Singapore International Commercial Court | All challenges dismissed; awards declared final, binding, enforceable (Aug 2025) |
Current Enforcement | SICC / Sheriff of Singapore Courts | Seizure and sale of shares in Bhira Investments and Tata Power International ordered |
Pending Appeal | Singapore Court of Appeal | Appeal filed by Tata Power; no stay of enforcement sought or granted |
At Tata Power's annual general meeting in July 2025, Chairman N Chandrasekaran stated that the arbitration matter remained under appeal and declined to comment further. The enforcement action represents one of the largest arbitration-related claims pursued against an Indian corporate entity, directly targeting the group's overseas coal and investment holdings.