Disclosure of Legal Case
Awaiting price reaction for this filing.
Lynx Machinery has disclosed a long-standing civil dispute with Shree Laxmi Trading Corporation related to the period FY 1992–1996. The company claims it is owed around ₹21.3 lakhs by the counterparty, while Shree Laxmi filed a suit in 1997 seeking around ₹28.5 lakhs plus interest. In 2018, the City Civil Session Court ruled against Lynx and ordered it to pay about ₹29.4 lakhs plus interest at 1.75% per month. Lynx has challenged this order before the Bombay High Court (First Appeal No. 71 of 2022), and the matter is still pending. The company has been mentioning this case in its annual report notes since 1996, and is filing this BSE disclosure at the exchange's request for better governance.
Potential liability of about ₹29.4 lakhs plus monthly interest at 1.75% exists, partly offset by a counter-claim of ₹21.3 lakhs. Since this is an old, already-disclosed case under appeal, any near-term impact on the stock is likely limited, but a final adverse ruling could pressure the small company's financials.