Singapore Court Allows Enforcement Actions Against Tata Power Over $650 Million Arbitration Award

Tata Power faces the potential seizure and sale of its shareholdings in two Singapore-based subsidiaries after the Singapore International Commercial Court (SICC) granted enforcement orders in favor of Kleros Capital Partners. The legal action seeks to recover an arbitration award exceeding $650 million, which is approximately ₹6,113 crore, according to a statement issued by Kleros.

The enforcement orders authorize the Sheriff of the Singapore Courts to seize and sell Tata Power’s shares in Bhira Investments Pte. Ltd. and Tata Power International Pte. Ltd. to satisfy the judgment debt. Kleros is a British Virgin Islands-incorporated investment advisory firm focused on resource and infrastructure opportunities across Europe and Asia.

This development follows the SICC’s dismissal on August 26, 2026, of Tata Power’s applications to set aside arbitration awards issued in Kleros’s favor. The Singapore court subsequently recognized the awards as judgments, clearing the path for enforcement proceedings.

Tata Power has appealed against the SICC’s decision. However, Kleros stated that the appeal does not automatically stay enforcement and that Tata Power had not sought a stay as of November 6.

The underlying dispute relates to the Krutogorovo coal deposit in Russia’s Kamchatka region. Kleros and Tata Power had entered into two agreements in 2013 and 2014 to jointly explore the development of the coal deposit.

In November 2020, Kleros initiated arbitration proceedings at the Singapore International Arbitration Centre (SIAC). In September 2023, a three-member arbitral tribunal unanimously held Tata Power liable for breaching the agreements and duties of good faith and confidence. The tribunal found that Tata Power had misused confidential information and pursued the project independently, bypassing its contractual partner.

On July 1, 2025, the tribunal awarded Kleros damages of $490.32 million, which is around ₹4,658 crore, along with simple interest of 5.33% annually from November 30, 2020, until payment.

According to Kleros, the outstanding amount has now surpassed $650 million, including principal damages, accrued interest, and costs. The interest component alone is accruing at approximately $71,600, or around ₹68 lakh, a day. Kleros also noted that Tata Power has not paid any part of the amounts awarded under the arbitration proceedings. Tata Power’s appeal against the August 26 decision remains a separate legal proceeding.

"This case highlights the critical importance of contract compliance and maintaining good faith in cross-border joint ventures. When disputes escalate to international arbitration, corporations must navigate complex legal jurisdictions where unfavorable rulings can lead to asset enforcement actions. For businesses engaging in international partnerships, robust risk management and clear governance are essential to prevent severe financial liabilities and prolonged legal battles." — Dr. Shishir Gupta, Founder & CEO, StartupLanes