JAKARTA (Indonesia Today) ??? PT Lebong Tandai???s lawsuit against Avocet Mining Plc cannot be accepted as South Jakarta District Court judges declared the court does not have the authority to adjudicate the dispute, Wednesday (Sep 19).

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In the interlocutory decision, presiding judge Suhartoyo granted the defendant???s plea that demands the court to reject the case. Hotman Paris Hutapea, lawyer of Avocet, has earlier stated that the case should have been brought to arbitration board, instead of a district court.

Lebong Tandai (PTLT), a subsidiary of Merukh Enterprises, filed a lawsuit against Avocet Mining PLC. Claiming Avocet Mining had violated shares purchase agreement, Lebong Tandai demands a US$2.1 billion compensation.

Lebong Tandai also included J&Partners Asia Ltd, J Resources Nusantara (formerly PT Bara Kutai Energi), and J Resources Asia Pasifik Tbk as the second, third and fourth defendant respectively.

PT Lebong Tandai claimed that Avocet infringed its rights by entering PT Avocet Mining Mongondow (PTABM) into shares purchase transaction with J Resources Nusantara, while PTLT stated Avocet has agreed to sell it to the company.

According to PTLT, work contract between the company and Avocet Mining PLC gives PTLT first right of refusal in the share purchase, which regulated that before transferring the share to other parties, Avocet should offer the shares to PTLT.

PTLT explained that 80% of Avocet Mining shares have been sold to J Resources Nusantara (formerly PT Bara Kutai Energi). PTLT, then, demanded US$1.1 billion material compensation and US$1 billion immaterial compensation. The company also demands the court to seize 80% PTAMB shares owned by Avocet Plc which has been transferred to J Resources Asia Pasifik Tbk. (indra@theindonesiatoday.com)