Singapore court rejects Tata Power challenge to $490-million arbitration award

Tata Power has suffered a legal setback in Singapore after the Singapore International Commercial Court rejected its attempts to overturn an arbitration award requiring it to pay $490.32 million to investment firm Kleros Capital Partners.

The court dismissed three applications brought by the Indian power major, rejecting arguments that the arbitral tribunal had failed to properly address crucial issues while determining damages. It also found insufficient grounds to support Tata Power’s allegations of apparent bias involving two members of the tribunal. Tata Power has said it intends to challenge the ruling before the Singapore Court of Appeal. It has 28 days from the August 26 judgment to file its appeal.

Dispute dates back to 2013

The case originated from discussions between Tata Power and Kleros over a proposed investment in the Krutogorovo coal project in Russia’s Kamchatka region. The companies entered into non-disclosure agreements in 2013 and 2014 as they explored the possibility of pursuing the project. Kleros provided information concerning the coal deposit and the process for securing a mining licence. Their relationship subsequently deteriorated amid disagreements over the proposed venture’s ownership and control. Tata Power later secured the mining licence through its Russian subsidiary, FENR, in 2018. The project was eventually considered commercially unviable and the licence was surrendered in 2022.

Kleros, however, accused Tata Power of breaching confidentiality and other contractual obligations and initiated arbitration proceedings in Singapore in November 2020.

Tribunal awarded $490.32 million

An arbitral tribunal unanimously found in 2023 that Tata Power had breached obligations arising from the agreements. The proceedings then moved to determining the financial consequences. In July 2025, a majority of the three-member tribunal assessed Kleros’ lost opportunity and awarded it $490.32 million in damages. Tata Power was additionally directed to pay Kleros’ legal costs of about S$8.29 million. Simple interest of 5.33 per cent annually was imposed on the damages from November 30, 2020 until payment. One arbitrator dissented on the calculation of damages and considered a substantially lower amount appropriate.

Court rejects Tata Power arguments

Tata Power subsequently approached the Singapore court, arguing, among other grounds, that important questions involving causation, remoteness and mitigation had not been properly determined by the tribunal majority. The company also raised objections concerning alleged links between arbitrators and Omni Bridgeway, the third-party funder backing Kleros’ arbitration claim. The court rejected these arguments. It concluded that the tribunal had considered the essential questions before it and said setting-aside proceedings could not be used simply to revisit the merits of an arbitral decision. It also found that the involvement of Omni Bridgeway in unrelated proceedings involving the arbitrators did not establish apparent bias.

Tata Power to appeal

The ruling leaves the $490.32-million damages award intact, along with applicable interest and costs. However, the dispute is not over, with Tata Power confirming that it will pursue an appeal. The company has until late September to approach the Singapore Court of Appeal. The latest judgment relates to Tata Power’s challenge to the existing arbitration awards and does not constitute a fresh $490-million penalty against the company.