SC Dismisses Bengal’s Plea in Singur Arbitration Dispute with Tata Motors

MP, 10 Aug 2025, Kolkata: The Supreme Court has reportedly dismissed a special leave petition (SLP) filed by the West Bengal Industrial Development Corporation (WBIDC) in its dispute with Tata Motors over compensation for the abandoned Nano car project at Singur. The petition challenged a Calcutta High Court order that had rejected WBIDC’s plea to implead one of the arbitrators in the proceedings.

A bench of Justice P.S. Narasimha and Justice Atul S. Chandurkar, after hearing senior advocates Kapil Sibal and state advocate general Kishore Datta for WBIDC, described the SLP as "uncalled for and ill-advised." The court is learnt to have said the plea raised no legal grounds for interference, as a petition under Section 36 of the Arbitration and Conciliation Act—seeking a stay on the arbitral award—is already pending before the High Court. It also noted that no case of fraud or corruption, as alleged by WBIDC, had been established.

In October 2023, a three-member arbitral tribunal is said to have unanimously awarded Rs 765.78 crore to Tata Motors, along with 11 per cent annual interest from the date of the award, plus Rs 1 crore towards arbitration costs. The award covered expenditure incurred on setting up the Singur plant, capital losses, and litigation costs.

WBIDC has reportedly moved the High Court under Section 34 of the Act to challenge the award and is seeking an unconditional stay on its execution. Tata Motors, represented in court by senior advocate Mukul Rohatgi, has filed a petition to enforce the award.

The Singur factory, intended for producing the Nano small car, was about 90 per cent complete when Tata Motors withdrew from Bengal in 2008 following a prolonged agitation over land acquisition. The company later sought damages through arbitration.

With the Supreme Court’s order, the dispute over the award will now be determined by the Calcutta High Court, where both sides are pursuing parallel petitions.

Source: Millennium Post