Background and Transaction Details

The Company availed an unsecured inter-corporate loan of ₹2,40,00,000 (₹2.4 crore) from S.K. Dudhoria Holdings Private Limited ("SKDHPL") during the financial year 2015-16. Of this amount, ₹2,10,00,000 (₹2.1 crore) has been repaid. The repayment terms were revised by agreements dated September 18, 2021 and February 23, 2022.

Settlement Agreement

By a settlement agreement dated April 14, 2025, the parties settled all claims at ₹58,44,646 (₹58.44 lakh). The Company handed over post-dated cheques dated September 30, 2025 and October 30, 2025 for this settled amount. SKDHPL did not present these cheques for payment.

Legal Proceedings

SKDHPL has filed proceedings to execute an award before multiple courts:

  • Hon'ble Calcutta High Court (EC-COM/608/2025)
  • Courts at Saket, New Delhi (Ex.(Comm.) Award by Arb. Comm. No. 37/26)
  • Courts at Bhubaneswar
  • Courts at Gurugram

In these proceedings, SKDHPL claims ₹1,73,68,353 (₹1.74 crore), which represents the award amount plus interest up to March 31, 2026, together with further interest.

Company's Legal Challenge

The Company has challenged the orders dated May 12, 2026 and June 9, 2026 before the Hon'ble Delhi High Court in CM(M) No. 1548/2026. The grounds for challenge are that the award stands novated by the settlement agreement dated April 14, 2025. This petition is currently pending.

Current Position and Financial Impact

The Company's position is that its liability is limited to ₹58,44,646 (₹58.44 lakh) as per the settlement agreement. As the liability and its amount are pending adjudication in various courts, the Company is not in a position to comment on the merits of SKDHPL's claims. The figures attributed to SKDHPL (₹1.74 crore) are as stated in its claims and are not admitted by the Company.

Disclosure Rationale

The Company explains that at relevant times, it regarded these events as a commercial dispute over interest and charges on an inter-corporate loan where most of the principal had been repaid. The amounts involved were below the thresholds under Regulation 30(4) of SEBI LODR. However, upon review including correspondence with the Exchanges, the Company is making this disclosure now.

Future Disclosures

The Company will disclose further material developments under Regulation 30(7) of SEBI LODR Regulations.