Date: August 21, 2026

Legal or Strategic Updates

Case Details:

  • Case/Application Numbers: C.A. No. 271 of 2022 and C.A. No. 118 of 2025 in CP No. 50 of 2010 (in CLB)
  • Nature: Execution proceedings arising out of order dated 13 August 2015 passed by erstwhile Company Law Board, New Delhi
  • Proceedings relate to implementation/execution of order dated 13 August 2015 regarding exit of minority shareholder/MUT from F.M. Haemmerle Textiles Limited (FMH), erstwhile subsidiary of Vardhman Polytex Limited

Latest Development:

  • Hon'ble NCLT, Chandigarh Bench order dated 20 August 2026 (uploaded on NCLT portal on 21 August 2026) allowed execution application
  • Order issued directions for payment by the Company
  • Amount involved: Rs. 10.19 crore (value of FMH shares determined at Rs. 5.40 per share as on 31 March 2010)
  • Interest rate: 15% per annum

Financial Implications:

  • If upheld and implemented, would result in financial liability comprising the amount plus applicable interest
  • Final financial impact subject to outcome of appellate proceedings and any interim/final relief granted

Compliance Timeline:

  • NCLT directed Company to make payment within 30 days from date of pronouncement (20 August 2026)

Status:

  • Order pronounced on 20 August 2026
  • Company taking appropriate legal steps for filing appeal before appropriate appellate forum
  • Company intends to seek appropriate interim relief/stay against operation and implementation of the order

Other Information:

  • Disclosure made to intimate Stock Exchanges regarding material development/outcome
  • Company will keep Stock Exchanges informed of all material developments including appeal filing, interim orders, and final outcome