WJ Towell & Co increases claim in arbitration from Blue Star to Rs 461.74 crore

Air-conditioner maker Blue Star Ltd on Wednesday said Oman's WJ Towell & Co LLC has increased claim to Rs 461.74 crore from it in their ongoing arbitration proceedings at International Chamber of Commerce.

In April this year WJ Towell & Co LLC (WJT) had filed arbitration proceedings against Blue Star with International Chamber of Commerce (ICC) claiming OMR 103,18,000 (approximately Rs 223.6 crore) plus an interest of 7 per cent on the total claim amount, the company said in a regulatory filing.

"In the statement of claim received by the company on October 1, 2024, the claim amount has been revised to OMR 2,11,80,748 (approximately Rs 461.74 crore) plus interest of 7 per cent on the total claim amount," it added.

"The company reiterates that the claims filed by WJT are frivolous, unsubstantiated, premised on fundamental factual misstatements and contrary to the overwhelming facts and evidence," Blue Star said.

Based on its assessment, the company said the claims made by WJT will not have any material financial impact on it.

Blue Star and WJ Towell & Co LLC (WJT) had entered into a shareholders' agreement on October 1, 2015 for managing affairs of Blue Star Oman Electro Mechanical Company.