Telangana High Court Freezes Share Transfer in Rs 2,840 Crore German-Russian Arbitration Dispute

The Telangana High Court’s order in OWH SE i.L. v. United Company Rusal International PJSC has brought temporary relief to a German financial institution attempting to enforce foreign arbitral awards worth approximately ₹2,840 crore against entities linked to the Russian aluminium giant Rusal.

The dispute relates to enforcement proceedings initiated by OWH SE i.L., which approached the Telangana High Court seeking recognition and enforcement of foreign arbitral awards issued by a tribunal constituted under the London Court of International Arbitration (LCIA).

Justice T. Madhavi Devi passed an interim order restraining the transfer of certain shares held by Russian-linked entities in Pioneer Aluminium Industries Limited. The Court directed that the shareholding cannot be transferred until the next hearing in the case.

The German company had approached the High Court seeking enforcement of two arbitral awards issued in London. The awards were delivered by a three-member tribunal comprising Jonathan Nash KC, Dame Elizabeth Gloster DBE, and Andrew Lenon KC.

According to the enforcement petition, the tribunal granted €213.77 million under an award dated September 25, 2024. A subsequent award dated August 29, 2025 granted €33.83 million as additional interest.

When combined with accrued interest and legal costs, the total amount that the petitioner seeks to enforce in India comes to approximately ₹2,840 crore.

OWH SE requested the Court to declare these arbitral awards binding and enforceable in India in the same manner as a decree of an Indian court.

During the proceedings, the petitioner informed the Court that enforcement attempts had already been made in several jurisdictions including Austria, Switzerland, Netherlands, Germany, Jersey, England and Wales, Cyprus, Kazakhstan and Qatar.

However, the company stated that it has been able to recover only a small portion of the total amount awarded. It alleged that the award debtor had reorganised its corporate holdings and shifted assets across subsidiaries to make enforcement more difficult.

Counsel appearing for OWH SE argued that United Company Rusal International PJSC controls the Indian investment through multiple subsidiary entities.

It was submitted that Rusal owns 100% of MK Gershvin LLC, which in turn holds 100% of AL Plus Holding LLC. These entities together hold roughly 26% shareholding in Pioneer Aluminium Industries Limited, a company headquartered in Hyderabad with assets in Andhra Pradesh.

The petitioner further informed the Court that the arbitral awards had already survived legal challenges in England. It was pointed out that the award debtors’ challenge before the LCIA had been dismissed, and a further challenge under Section 68 of the English Arbitration Act before the High Court of Justice, Commercial Court, London was also rejected.

After considering the submissions, the Telangana High Court observed that the arbitral award debtor was United Company Rusal International PJSC and that the award had already withstood challenge proceedings.

To prevent any possible attempt to defeat the award by transferring assets, the Court restrained AL Plus Holding LLC from transferring its shareholding in Pioneer Aluminium Industries Limited to the extent of 26% of the company’s shares.

The interim order will remain in force until the next date of hearing.

The High Court has now listed the matter for further hearing on April 7, 2026, where the Court will continue examining the enforcement petition.