Alpha Real Trust, a registered investment company listed on the London Specialist Fund Market of the London Stock Exchange, has won the arbitration in its dispute with Logix Group. The International Court of Arbitration ruled in favour of Alpha Real Trust in a dispute related to its investment in Galaxia, a joint venture with the Logix Group (Logix) located on 11.2-acre special economic zone (SEZ) in Noida. The Arbitral Tribunal, by a majority, decreed that Logix and its principals had breached the terms of the shareholders’ agreement. Consequently, it has ordered the return of entire capital invested £4.9 million along with interest at 18 per cent from January 31, 2011, to January, 20, 2015, to Alpha Real Trust with all costs incurred towards the arbitration.
The total award amounts to £9.2 million. Additionally, a further 15 per cent interest on all sums was awarded to the company from January, 20, 2015, until the actual date of payment by Logix of the award.
“The Arbitral Tribunal has also ruled that the company has no obligation or liability to fund the outstanding Noida lease rent under the shareholders’ agreement. The award to the company represents a potential realisation of approximately £9.2 million. The directors continue to hold the indirect investment at Rs.450 million (£4.9 million) in the accounts due to uncertainty over timing and final value. The company will actively seek recovery of the sums awarded,” said a release.
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“This award will definitely increase investor confidence in India, and go a long way in strengthening further investments into the country as India gears up for further economic growth. I welcome this award from the ICC in delivering a just result and compensation to Alpha Real Trust for the breaches by Logix of its contractual obligations,” a release said quoting Brad Bauman, Joint Fund Manager.
Alpha Real Trust is managed by Alpha Real Capital LLP, an International Funds Management Group, with its headquarters in London.