GATI spikes up

GATI, a leading logistics company, is in the limelight today after a long time. The stock which had closed yesterday at Rs.23.95, opened higher at Rs.25 and continues to remain at the same levels. Volumes are up more than twice at 78,000 shares. Market cap stands at Rs.217 crore.

The stock has reacted to the news published by the company – GATI wins arbitration against Air India, Arbitral Tribunal directs Air India to pay Rs. 26.82 crore to Gati. This has been a long pending legal wrangle and it comes as a relief to finally see the end of the matter.

In May 2007, Gati partnered with Air India for dedicated freighter service. Due to certain dispute the service had to be discontinued from March 2009. The matter was referred to Arbitration for adjudication of disputes between Air India and Gati.

As per the statement issued by the company, the Arbitral Tribunal had passed its verdict dated 17 September 2013 directing Air India to pay a net sum of Rs 26.82 crore towards claims, damages interest and costs to Gati. Also, the Arbitral Tribunal has said that in the event of Air India failing to comply with the award within 30 days, Air India shall be liable to pay future interest at 18% per annum thereafter.