Engineering and Construction Company, Punj Lloyd's UK based subsidiary - Simon Carves (SCL) has filed a case against SABIC Petrochemicals UK Ltd on the issue of advance payment bond and a performance bond. The company demanded costs and damages associated with cost overruns in the project. The UK based court is likely to give its verdict within few weeks as per reports of The Financial Times.
 
It may be noted that Simon Carves (SCL) had signed a contract with SABIC for the construction of a LDPE plant in UK. However, it was terminated alleging SCL's failure to complete the project in time.

In a filing before Bombay Stock Exchange, Punj Lloyd disclosed that it has asked for "restitution" of performance and advance payment bank guarantees worth 28.5 million Pound Sterling as per guidelines of contact. It has also asked the UK court to direct SABIC to pay all economic losses caused due to termination of deal in-between.

Punj Lloyd said that the deal was about to complete as per guidelines of contract. The shares of company traded at Rs 119.45 with decline of 13.57% at BSE.