Lanco Infratech Ltd has got a reprieve from an Australian court, which the company said has dismissed the application by Perdaman Industries seeking to restrain Griffin Coal Mining from mortgaging its assets.

The diversified Lanco Infratech had bought the Australian company Griffin Coal for about $750 million.

Perdaman's application for a freezing order refraining Griffin from entering into a charge or security without notice to Perdaman, filed in the Supreme Court of Western Australia against Griffin Coal Mining has been dismissed, Lanco said in a press release on Friday.

The hearing of the said application took place on July 27, 2011. In its order dated August 11, 2011, Mr Justice Beech dismissed Perdaman's application in favour of Griffin.

According to Mr Nagaprasad Kandimalla, Lanco Infratech's CEO (Business Development), the development bodes positively on two counts for the company. Firstly, there will be no third-party interference in the development of the mines. In the next four years, Lanco is planning to invest up to $1 billion.

Secondly, the judgment gives strength to “our arguments in the main lawsuit filed by Perdaman, which is expected to come up in the next few months,” he told Business Line . He had earlier described the case as baseless.

According to reports, Perdaman had filed a A$3.5-billion-lawsuit against Lanco alleging non-compliance with coal supply pact for its upcoming urea plant in Western Australia. It also filed an injunction not to allow future mortgages on Griffin Coal without prior intimation.

Related Topics