ION Exchange (India) Limited has informed the Exchange about Update on the Litigation matter
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ION Exchange (India) Limited has informed the exchanges about a positive development in an ongoing arbitration case. ACETP (Angeripalayam Common Effluent Treatment Plant Limited) had filed a claim against the company for non-performance of an Effluent Treatment Plant, seeking damages including capital cost, loss of production, plant failure, and operational costs. The Sole Arbitrator, Mr. S. Parthasarathy (Senior Advocate), has now passed an arbitral award holding that both the claim and the counter-claim are barred by the law of limitation and have been dismissed. As a result, an arbitral award of Rs. 17.48 crore (along with interest) previously passed against the company stands dismissed. This litigation was disclosed as a contingent liability in the company's notes to accounts.
This is a favourable outcome for shareholders as a Rs. 17.48 crore potential liability has been dismissed, reducing contingent liability exposure and removing a overhang on the stock. The ruling removes uncertainty around this long-pending dispute.