Tata Chemicals shares rise 2% as tribunal rejects ₹908-crore claim

Tata Chemicals Ltd shares rose 2% at the day's high in Friday's trade after a three-member tribunal of the Mumbai Centre for International Arbitration rejected a ₹908 crore claim filed against the company by Allied Silica Ltd (ASL) and its promoter, Manmohan Singh Jain. However, the tribunal's majority members directed Tata Chemicals to pay ₹1 crore in principal, along with interest and certain costs.

The final award, dated October 15, 2026, unanimously rejected the ₹908 crore claim against Tata Chemicals. However, the direction to pay ₹1 crore, along with interest and costs, was supported by the majority members of the tribunal and opposed by the dissenting member. The company disclosed the development in an exchange filing dated October 16.

Tata Chemicals shares touched a high of ₹638, up around 2% from their previous close of ₹627.85. The stock opened at ₹629.15 and touched a low of ₹625.60 during the session.

What is the Tata Chemicals arbitration dispute?

Tata Chemicals had informed stock exchanges on December 11, 2024, that Allied Silica Ltd and its promoter, Manmohan Singh Jain, had filed a statement of claim seeking ₹908 crore against the company in arbitration proceedings initiated under the rules of the Mumbai Centre for International Arbitration.

The latest award brings a major development in the dispute, with the tribunal rejecting the entire ₹908 crore claim. However, the majority members directed Tata Chemicals to pay ₹1 crore as principal, along with interest and certain costs. The dissenting member rejected this payment direction.

What did Tata Chemicals say?

Tata Chemicals said it was examining the final award and would evaluate its future course of action. The company has not yet specified what steps it may take following the tribunal's decision.

The filing, made under Regulations 30 and 51 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, included details of the award and the status of the proceedings.