Perdaman Chemicals has widened its multi-billion dollar legal battle over its stalled urea plant in Collie, launching a Federal Court damages claim against India's second largest bank.

Perdaman is already embroiled in a lawsuit against the Indian miner Lanco Infratech, which took over the debt-ridden Griffin Coal in Collie in 2010.

It has accused Lanco, which was due to supply it with coal for its urea plant, of hiking up the price of its product in a bid to pay off debts.

Lanco has denied the claims.

Perdaman has now launched a fresh damages claim against the Indian bank, I-C-I-C-I, which is Lanco's lender.

The matter is due in court in February.