Syschem (India) Limited provides an update to its disclosure dated February 26, 2024 (Ref: SIL/2023-24/78), which was submitted under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The update concerns a petition/proceeding that was pending before the Hon'ble National Company Law Tribunal (NCLT), Chandigarh bench.
The company informs that the parties to the dispute, M/S Lotus Builders and Syschem (India) Limited, have amicably resolved the matter. They executed a Settlement Agreement dated June 4, 2026.
Nature of the Event
The event is the execution of a settlement agreement to resolve a legal dispute that was pending before the NCLT.
Details of Dispute and Parties
The dispute pertained to the dishonor of certain cheques issued by Syschem (India) Limited to M/S Lotus Builders towards payment obligations.
Terms of Settlement
Pursuant to the Settlement Agreement, all disputes, claims, and counterclaims between the parties have been settled. A sum of ₹1,25,00,000/- (Rupees One Crore Twenty-Five Lakhs Only) shall be paid as full and final settlement of all claims.
Current Status and Expected Action
The current status of the case is that it has been amicably settled. Consequent to the agreement, the parties will take necessary steps to file appropriate applications/documents before the NCLT, Chandigarh bench, for the withdrawal/disposal of the proceedings. This action is contingent upon the company making the full and final payment.
Financial and Operational Impact
The company states the settlement will have "no material adverse impact" on its financials, operations, or other activities, except for the financial implications arising from the payment of the settlement amount of ₹1.25 crore.