Disclosure regarding filing of case by ex-employees in Labour Court, Jamshedpur.
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Awaiting price reaction for this filing.
Bihar Sponge Iron has disclosed that 18 former employees have filed a petition against the company in the Labour Court, Jamshedpur, under Section 15(2) of the Payment of Wages Act, 1936. The ex-employees are claiming unpaid wages totalling Rs. 3.64 crore (Rs. 3,64,23,458.48). The notice was received on 3rd September 2025. The petitioners allege that although their employment was not formally terminated, wages due to them were not disbursed. The company is preparing its response and will contest the matter in court. Importantly, the company has stated it does not recognise the claim and is not confirming any amount owed.
The company believes the financial impact will be limited given the size of its operations. At Rs. 3.64 crore, the claim is relatively small and the matter is at an early stage, so there is minimal immediate effect on shareholders or the stock price. However, the outcome of the case will need to be watched.