What will be the result of IRL's litigation?Surely all the legal...

What will be the result of IRL's litigation?
Surely all the legal disputes that IRL is involved in must scare off many would be investors.

The results of this litigation will set the scene for the future.

The announcement on 9th May 2013 stated "Arbitrator expected to announce the Award in July 2013."

That date has already passed, and has been replaced with
"will at least partially fall within our favour over the next several months."

So back to the slow......... bureaucratic system in India.

The announcement originally stated that a result WAS due in July 2013 for AUD$12 million +

ie. (2) $3.38M +(3) $1.04M +(4) $0.27M + (5) $1.63M +(6) $4.6 M + (7) $0.18M + (8) $0.12M +(9) $0.90 = $12.12 million

This comprised of
(2) Reduction of Contract Price of INR 1,53,470/- consequent upon reduction in rate of Excise duty

(3) Liquidated Damages

(4) Illegal and Arbitrary deduction made by HCL due to non deduction of TDS

(5) Appointment of Statutory persons under the Mines Act and MMRs is responsibility of HCL

(6) Material escalation

(7) Fixed cost recovery due to Chalan issue.

(8) Recovery on account of small explosive storage

(9) Recovery on account of power outages

Don' forget the amount of $6.5 M currently before the courts.

"Contract Price of MIC quoted as exclusive of taxes but payment being made by HCL inclusive of Taxes (Ref. Work Order Clause 4.9.1)"
Case has been admitted in Supreme Court of India. Admission to this Court continues to raise our expectation of a positive outcome.

Total amount claimed. ie AUD$18.62

So what can we expect from the new announcement?
"will at least partially fall within our favour over the next several months."

Lets assume that partially means 25% of the amount claimed, this would mean a payment of $4.65 million (twice IRL's market cap). Even 25% would be fantasic. This is only the amount owed to Jan 2013 and will set the scene for increased payments from Surda over the next 4 years.

Surely IRL management are hopeful of a much larger settlement,ie. a 50% payout win. Lets hope this is a more realistic scenario. Especially since IRL won the original court case.
A payout of AUD$9 million, = 4 x IRL MARKET CAP

WHAT investors miss is that a settlement of AUD$9 million would also mean a AUD$2 million pa. increase in income over 4 years.