Oswal loses “unusual” move to delay trial

Pankaj Oswal has lost a bid to delay a $500 million lawsuit in which he is suing Apache Corporation over damages related to the cost overrun on the development of Burrup Fertilisers’ ammonia plant in the Pilbara.

Mr Oswal, who was a 65 per cent shareholder in Burrup, claims that he entered into a fixed-price construction contract to build the ammonia plant for $US320 million.

However, the Indian national says that he stumped up an additional $491 million to cover subsequent cost blow-outs on the project.

Mr Oswal claims that under the contract, Burrup Fertilisers agreed to reimburse him for any cost overruns he had covered.

Construction of the plant started in 2006 but hit financial trouble in 2010, during which time Mr Oswal lost his stake in the company when the ANZ Banking Group called in administrators.

Apache subsequently bought Mr Oswal’s 65 per cent stake in the company and completed construction of the plant.

Mr Oswal had attempted to delay the lawsuit against Apache until another court case he was involved in was resolved.

However Justice John Gilmour dismissed Mr Oswal’s move to suspend the case and ordered that the matter proceed to trial.

In making the judgment, Justice Gilmour noted that the other court case may take years to resolve.

Mr Oswal was also ordered to pay Apache’s court costs for the application to delay the trial.

Apache said Mr Oswal would now have to “confront the facts the law concerning his business affairs in Australia” after the court denied him the “unusual application to delay his own lawsuit”.

“As requested by Apache, the Federal Court has ordered that the matter proceed to trial and also that Mr Oswal pay Apache’s costs,” Apache said in a statement.

“While Mr Oswal seeks delay, Apache is ready for all Oswal-related matters to be heard expeditiously. In court proceedings, Apache will shine a bright light on Mr Oswal’s Australian businesses and business practices.”