A high-stakes international arbitration dispute involving a German financial institution and companies linked to Russia’s aluminium powerhouse has landed before the Telangana High Court, which has stepped in to prevent a key share transfer while enforcement proceedings unfold.
The court has ordered a temporary halt on the transfer of shares held by entities associated with Russian aluminium giant United Company RUSAL International PJSC in Pioneer Aluminium Industries Limited. The direction came during hearings on a petition filed by the German financial entity OWH SE i.L. seeking enforcement of foreign arbitral awards collectively valued at about ₹2,840 crore.
Justice T. Madhavi Devi issued the interim order, restraining AL Plus Holding LLC—a subsidiary linked to the Rusal group—from transferring its stake in Pioneer Aluminium Industries to the extent of roughly 26 percent until further orders. The matter is scheduled to return to court on April 7.
Arbitration awards from London
The dispute stems from two arbitral awards delivered in London under the framework of the London Court of International Arbitration.
A three-member tribunal comprising Jonathan Nash, Elizabeth Gloster, and Andrew Lenon issued the rulings in favour of the German claimant.
The tribunal granted:
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€213.77 million through an award delivered in September 2024
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€33.83 million in additional interest through a subsequent ruling in August 2025
With accumulated interest and costs, the amount the claimant seeks to enforce in India is estimated at around ₹2,840 crore.
Enforcement trail across multiple countries
The German institution has asked the court to recognise the awards as binding and enforceable in India, treating them on par with a court decree.
According to submissions before the court, attempts to enforce the awards have already been made in several jurisdictions including Austria, Switzerland, the Netherlands, Germany, Jersey, England and Wales, Cyprus, Kazakhstan and Qatar. Only a small portion of the money has reportedly been recovered so far.
The claimant argued that restructuring of corporate holdings and shifting of assets among subsidiaries made enforcement difficult in those jurisdictions.
Shareholding link to Indian company
During the hearing, it was argued that the Russian aluminium group controls its Indian investment through a chain of subsidiaries. The structure, the court was told, runs from Rusal to MK Gershvin LLC and then to AL Plus Holding, which together hold about a 26 percent stake in Pioneer Aluminium Industries.
The company is headquartered in Hyderabad and operates assets in neighbouring Andhra Pradesh.
Awards already upheld in England
The German claimant also pointed out that the arbitral awards had survived challenges in England. Efforts to set aside the rulings before the tribunal were unsuccessful, and a further challenge under Section 68 of the English Arbitration Act before the High Court of Justice in London was dismissed.
Taking note of these developments and the possibility of asset diversion, the Telangana High Court concluded that interim protection was necessary. The restraint on share transfer will remain in place until the next hearing as the enforcement proceedings continue.
