Key Quantitative Figures

  • Outstanding amount received: ₹31,96,86,729 (Rupees Thirty One Crore Ninety Six Lakhs Eighty Six Thousand Seven Hundred and Twenty Nine)
  • Additional amounts: Applicable interest and other related dues (exact figures not specified beyond the principal)
  • Previously forfeited performance bank guarantees: ₹1,50,00,000 (Rupees One Crore Fifty Lakhs) and ₹35,00,000 (Rupees Thirty Five Lakhs), with interest at 4.5% per annum and proportionate cost of arbitration, as per the arbitral award.
  • Interest rate on outstanding amount: 9% per annum as per arbitral award.

Dates of Action

  • Arbitral Award passed: June 27, 2022
  • District Court at Mohali order: August 16, 2023 (set aside the arbitral award)
  • High Court of Punjab and Haryana order: May 5, 2026 (confirmed the arbitral award)
  • Date of receipt of order copy: May 12, 2026 (for High Court order)
  • Date of receipt of payment: August 26, 2026 (disclosure date)
  • Previous disclosure dates: August 11, 2023, October 31, 2023, May 13, 2026

Parties Involved

  • Khadim India Limited (disclosing entity)
  • Samagra Shiksha Abhiyan Authority (SSAA), Punjab through Director General School Education-cum-State Project Director (DG-School) (the Tenderer and opposing party)
  • Courts involved: Arbitral Panel, District Court at Mohali, High Court of Punjab and Haryana at Chandigarh

Purpose or Rationale

The disclosure is made to inform about the resolution of a dispute related to a tender for supply of school shoes and uniform floated by SSAA Punjab, where receivables were withheld and performance bank guarantees were forfeited.

Financial Impact

Financial impact is quantified: The company received ₹31,96,86,729 along with interest and other dues, which positively impacts cash flows. The amount includes principal and interest as per the arbitral award upheld by the High Court.

Legal Proceedings Summary

The dispute began with SSAA Punjab withholding approximately ₹32,00,00,000 in receivables and forfeiting performance bank guarantees of ₹1,50,00,000 and ₹35,00,000 via order dated August 28, 2020. Khadim pursued arbitration, resulting in an award in its favor on June 27, 2022, entitling it to ₹31,96,86,729 plus 9% p.a. interest, refund of forfeited guarantees with 4.5% p.a. interest, and arbitration costs. SSAA challenged this in District Court at Mohali, which set aside the award on August 16, 2023. Khadim appealed to the High Court, which confirmed the arbitral award on May 5, 2026, leading to the receipt of funds.

Capital Structure and Cash Flow Implications

No direct impact on capital structure disclosed. Cash flow implication is an inflow of ₹31,96,86,729 plus interest and dues, improving liquidity.

Forward-Looking Guidance

No forward-looking guidance or management commentary provided in the disclosure.