TWO Indian business families in the UK are on a £1 billion legal battle over a controversial iron ore contract.
Lakshmi Mittal, chairman of ArcelorMittal, the world’s biggest steel producer, is seeking £1 bn in damages from Essar Steel, which is headed by Ravi Ruia, at the London High Court.
A contract between ArcelorMittal and Essar was terminated in 2016 and the following year, ArcelorMittal was awarded £997 million in damages in an arbitration award.
Later, the High Court heard that its ruling 'remained unsatisfied' and there appeared no prospect that Ruia business was going to pay ArcelorMittal.
The court also said that Essar had acted in 'bad faith' by hiding documents and warned there was a 'serious risk' the business would try to hide properties.
Ruia’s Essar was alleged to have hidden assets through a series of fake internal transactions.
Essar company’s emails showed a 'deliberate withholding or concealment of documentation', the judge concluded.
In January this year, ArcelorMittal obtained a worldwide freezing, disclosure orders against Essar Steel and other branches of the group (Photo: Oli Scarff/Getty Images)
A spokesman for Essar said: “Essar does not agree with many of the factual findings in the ruling, however it recognises that the orders remain in place and will continue to ensure that it adheres to their terms.”
“The Essar Global holding company was not liable for the award against Essar Steel,” he added.
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