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Zuari to settle dispute with L&T amicably

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Zuari Cement, a subsidiary of Italian cement major Italcementi Group, has agreed to make a lump-sum payment to settle an acrimonious dispute with engineering and construction company Larsen and Toubro (L&T) over unpaid bills, sources said.L&T had last month filed for arbitration proceedings against the cement maker to claim Rs 188.5 crore in unpaid bills and payment delays. L&T alleged that Zuari failed to pay Rs 31.53 crore it owed to the engineering company for the construction of a 5,500-tonne per day capacity cement plant at Yerraguntla in Andhra Pradesh.L&T claimed the rest of the amount as a penalty for payment delay and for encashing a performance guarantee.The dispute between L&T and Zuari was being heard by a three-member panel, presided over by former SC judge BP Singh.

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