Tata Power stock fell as much as 4.7% in intraday trade on Thursday to hit a low of Rs 348.20 after the Singapore International Commercial Court rejected the company’s challenge to the damages awarded to Kleros Capital Partners and its claim of a natural justice breach.
Tata Power lost a case challenging a $490-million arbitration award to Kleros Capital Partners for violating an agreement with the bid for a coal asset in Russia and denying it the opportunity to benefit.
The stock closed at Rs 352 apiece, down 3.65% on the BSE , the lowest close since January 28, 2026
Tata Power said it has 28 days to appeal against Singapore International Commercial Court’s order on Wednesday at the Singapore Court of Appeal. The company will file an appeal against the decision of the Singapore International Commercial Court within this time period, it said.
The company faces a potential payout of over $640 million, for which it has made no provision, Bloomberg said in a report, quoting Morgan Stanley. The amount includes a $490.3 million claim, about $10 million in legal and additional arbitration costs, plus 5.33% interest since November 2020, taking the potential liability above $640 million, or around 5% of its market capitalisation, it said.
The Singapore International Commercial Court issued its judgment on August 26, 2026, which arose out of a challenge filed by Tata Power to the arbitral awards dated July 1, 2025 and August 27, 2025 in the arbitration proceedings which were initiated by Kleros against the company in November 30, 2020.
Tata Power had also challenged Singapore International Arbitration Centre (SIAC) Court’s decision dated June 5, 2025 rejecting the company’s challenge to the appointment of two arbitrators who issued the majority arbitral award.
The Singapore International Commercial Court dismissed the Company’s challenge holding that there was no breach of natural justice or the fair hearing rule by the majority in arriving at the final award.