Timken India Limited filed a disclosure pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, regarding an order passed by the High Court of Gujarat at Ahmedabad.

The case pertains to a long-standing labor dispute between Antifriction Bearings Corporation Limited (which was amalgamated with Timken India Limited) and a former employee, Mr. Anil Ambalal Modi. Mr. Modi's employment was terminated in November 1995. After failed conciliation, the dispute was referred to the Labour Court.

In 2005, the Labour Court ruled that the termination was illegal. It awarded Mr. Modi 65% back wages and ordered his reinstatement. The company filed an appeal against this order.

The High Court of Gujarat at Ahmedabad, in its judgment dated 17 June 2026 (LPA No. 110 of 2016 and LPA No. 338 of 2016), upheld the Labour Court's order. The court found no evidence to substantiate the company's claim that Mr. Modi had instigated other workers to undertake a go-slow, which was the grounds for his termination.

The court issued specific directives on the monetary compensation:

  • The company must pay Mr. Modi 65% back wages for the period from his termination in 1995 until the Labour Court's order in 2005. This amount is to be calculated based on the salary he was drawing at the time of termination, including any increments and enhancements that would have been applied during that period.
  • The company must pay Mr. Modi his full regular salary from January 2005 (the date of the Labour Court's reinstatement order) until the date he attained the age of superannuation. This salary is to be equivalent to what was paid to other Account Clerks in the establishment, including all increments and enhancements.
  • The company is permitted to deduct from the total amount any wages already paid to Mr. Modi under Section 17(B) of the Industrial Disputes Act, 1947 from January 2005 onwards, as well as any wages paid from September 2016 when he was reportedly reinstated.
  • The full computed amount is to be paid to Mr. Modi within six weeks from the date of receipt of the court order.

Financial and Operational Impact

The disclosure states that the company is in the process of determining the financial impact of this order, which will take some time. The financial impact is not yet quantified in the disclosure.

Next Steps

The company has stated it is likely to file an appeal against the present High Court order.