Singur arbitration: HC refuses WBIDC plea

Kolkata: Calcutta High Court on Thursday refused West Bengal Industrial Development Corporation's (WBIDC) prayer for an unconditional stay of an arbitration award in favour of Tata Motors over the Singur land dispute.The court directed WBIDC to file an undertaking, including all immovable properties, which will cover the cost of Rs 766 crore plus 11% interest per annum that the corporation will have to pay Tata Motors as damages.A single-judge bench of Justice Aniruddha Roy dismissed WBIDC's appeal for unconditional stay while alleging "fraud" against one of the arbitrators. The judge, instead, imposed a cost of Rs 50,000 on the corporation.A stay for eight weeks was granted to WBIDC to get its affidavit and assets together, but with an addendum. "If the undertaking is not filed before the registrar, original side, or the cash security is not deposited, as the case may be, as directed herein, within the said period of eight weeks, the stay will automatically be vacated," it said.The judge directed that if the security in the form of immovable properties is not sufficient to cover the cost, WBIDC can furnish cash security to secure the excess awarded amount.In Oct 2023, an arbitral tribunal asked WBIDC to pay Tata Motors Rs 766 crore compensation in connection with losses incurred on its manufacturing site in Singur. The company had to shift its plant to produce Nano cars from Singur to Sanand in Gujarat in Oct 2008 due to a land row. Tatas, by then, had put in over Rs 1,000 crore in Singur. WBIDC moved HC showing seven instances when one arbitrator and his wife were seen to be closely associated with Tata Motors.