Update on litigation filed by the company - Letter attached
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Emergent Industrial Solutions has filed criminal proceedings under Section 138 of the Negotiable Instruments Act against Wellspring Healthcare Private Limited and its Directors. The company had extended an Inter-Corporate Deposit of ₹5 crore to Wellspring Healthcare, which issued cheques for repayment that were subsequently dishonoured. The case has been filed in the Court of Metropolitan Magistrate, Patiala House Courts, New Delhi, and is currently at a preliminary stage. The company expects to recover the ₹5 crore principal along with applicable interest and legal costs.
No immediate adverse financial impact is expected as the company is pursuing legal remedies to recover the ICD amount. This filing indicates the company is taking aggressive action to recover defaulted loans, which is a positive step for shareholders expecting asset recovery.