Joseph 'Diamond Joe' Gutnick has been penalized $56 million as the court advocates mining fine. This lawsuit could be perceived as financial trouble for the mining magnate.

According to Herald Sun, Supreme Court Justice Clyde Croft upheld an award made by the Singapore International Arbitration Centre today. This will see the former Melbourne Football Club president out of pocket for about $40 million (US28.05 million).

The company he heads, Legend International Holding, was also told to pay about $17 million (US$12.35 million). Both are required to pay interest and some legal costs.

Oberon Review stated on its article that Mr Gutnick is personally on the hook for $US28.05 million of the $US40.4 million total award by the Supreme Court of Victoria. This is in favor of Indian Farmers Fertiliser Cooperative (IFFCO) and its subsidiary Kisan International Trading.

The company, Legend International, has to pay the outstanding amount of the judgment in favor of IFFCO. The interest is believed to add millions more to Mr Gutnick and Legend International's final bill.

Moreover, the lawyers of Diamond Joe are expected to seek a stay of the orders after the judgment. This will lay a substantial dent in the fortune of the former BRW Rich List member.

The Sydney Morning Herald added that IFFCO and Kisan, which have $6.9 billion in revenue last year, reportedly asked the Supreme Court of Victoria to enforce a final award issued in Singapore on May 7 by the Singapore International Arbitration Centre. This was after Mr Gutnick and Legend International refused to pay the money awarded to the fertilizer group.

The Singapore ruling found Mr Gutnick and Legend International Holdings had "induced, by fraudulent misrepresentation, certain purchases of shares in Legend International Holdings," according to court documents. The dispute is linked to the entrepreneur's desire to create a fertilizer group to rival Incitec Pivot seven years ago.

As noted by the site, Joseph Gutnick has made his fortune and earned his nickname "Diamond Joe" through his extensive investments in diamond and gold projects. This has made such a personal wealth he graced the pages of the BRW Rich List for many years. The last time was in 2014 when his wealth was estimated at $255 million.

With this situation, 'Diamond' Joe Gutnick is asking for a piece of advice from his lawyers regarding his appeal. But as of now, he has not given any statement yet about the issue.