Elecon Engineering Company Limited has informed the Exchange about Pendency of Litigation(s)/dispute(s) or the outcome impacting the Company
ELECON · price
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Awaiting price reaction for this filing.
Elecon Engineering has informed the exchange that its long-pending disputes with Bharat Heavy Electricals Limited (BHEL) have been settled amicably and disposed off. The cases were originally filed before the Arbitration Tribunal, with claims of Rs. 910 lakhs and Rs. 2,250 lakhs in receivables against BHEL. Under the settlement, Elecon has received Rs. 1,020 lakhs in one matter and Rs. 1,520 lakhs in the other, totaling approximately Rs. 2,540 lakhs. The company has confirmed there are no adverse financial implications from the resolution. This is an update to a prior intimation given on August 11, 2023.
Positive for shareholders — the settlement removes a long-pending legal overhang and brings in ~Rs. 25.4 crore of cash recovery, improving clarity on receivables and reducing contingent risk on the books.