India's i-flex Solutions has called in independent arbitrators to settle a bitter public dispute with Saraswat Co-operative Bank over Rs255 ccrore in damages claims filed by the bank against a failed systems deployment.
I-flex solutions, which is partly-owned by Citibank, notified the Bombay Stock Exchange of the latest developments in a statement today. The Indian software house and bank have agreed to the appointment of legal firm Shah and Sanghvi Associates as independent arbitrators.
The dispute erupted in June this year when Saraswat Bank terminated its license agreement with i-flex and filed for damages arising from an alleged failure to implement the firm's flagship Flexcube product. The bulk of the Rs255 ccrore damages claim centres around "business opportunity loss". The bank is also seeking recovery of a Rs2.24 crore downpayment against the total Rs3.5 ccrore contract value.