IFFCO and its Dubai domiciled subsidiary, Kisan International Trading, have filed a claim in the Supreme Court of Victoria, Australia against Diamond Joe and Legend International Holdings, says The Sydney Morning Herald.
IFFCO, which had $6.9 billion in revenue last year, is seeking to enforce a final award issued in Singapore on May 7 by the Singapore International Arbitration Centre.
The Indian cooperative major has sued the Australian companies for a combined payment of US 40.4 million dollar plus interest over a 2008 deal to set up an entity to take on Incitec Pivot.
However, Gutnick who is director in Diamond Joe has described the decision by the Singapore arbitrator as “bizarre”.
In 2008, Gutnick and his business partners announced a $103 million deal to supply Queensland phosphate to IFFCO. Under the deal, IFFCO was to invest the $103 million over two years through shares and options in Legend International Holdings.
IFFCO claims Mr Gutnick has been ordered to pay $US28.05 million and Legend International $US12.35 million by the Singapore arbitrator. IFFCO is also seeking interest on the payments.
