Arbitration over Tata Motors' claims relating to Singur dispute to continue

Arbitration proceedings to adjudicate claims of Tata Motors relating to the Singur dispute will continue as West Bengal Industrial Development Corporation's (WBIDC's) prayer under Section 16 of the Arbitration and Conciliation Act, 1996 was rejected on Monday.

WBIDC had filed a prayer for declaration that the Arbitral Tribunal constituted had no jurisdiction to adjudicate claims of Tata Motors under the lease deed of 2007. Section 16 of the Arbitration Act confers powers on the Arbitral Tribunal to rule on its own jurisdiction.

Sources said, the prayer has been rejected by the Tribunal and the main matter will now be heard on merits. A Tata Motors spokesperson said, "We cannot comment on this as the matter is sub judice."

Tata Motors has filed a statement of claims amounting to nearly Rs 934 plus interest; WBIDC too has filed counter claims of Rs 267 crore along with pendente lite interest on account of its investment in Singur.

Since the Supreme Court verdict in 2016 -which set aside the acquisition of 997 acres for the project by the Left Front-led West Bengal government - the company has been pursuing compensation.  

It had first written to WBIDC claiming compensation in early 2017 but it was rejected on grounds that the arbitration clause had perished with the lease deed as the apex court had struck down the land acquisition.

Tata Motors then invoked the arbitration clause. In May, the Arbitral Tribunal was constituted.