THE MINISTER OF STATE IN MINISTRY OF CHEMICALS AND FERTILIZERS (SHRI SATYA BRATA MOOKHERJEE)
(a) to (c): National Fertilizers Limited (NFL) had made advance payment of Rs.133 crores (US$37.62 million) to Karsan Limited, Ankara (Turkey) for supply of urea in 1995. On failure of
Karsan Ltd. to supply urea, NFL had moved the International Court of Arbitration (ICA) in
accordance with the Arbitration clause contained in the contract with the supplier. The ICA has
awarded nearly US$ 41 million in favour of National Fertilizers Limited for recovery against
Karsan Ltd. Steps are being taken to enforce the award. The Arbitral Award is however, under
challenge by Karsan Ltd. in the District Court at Amsterdam. The said proceeding is pending
disposal. The counter claim made by Karsan Limited against NFL has been rejected.
(d): NFL has already initiated attachments and recovery proceedings against the
identified assets in the name of M/s Karsan Limited and their associates at various locations/
countries. The attachment proceedings are in progress. However, this will depend on outcome of
the case pending in the District Court at Amsterdam. The Government is monitoring the efforts
and extending assistance wherever possible.