Nagarjuna Fertilizers and Chemicals Limited has informed the Exchange about Action(s) initiated or orders passed
Awaiting price reaction for this filing.
The Bombay High Court has ruled against Nagarjuna Fertilizers in enforcement proceedings related to a 2016 International Arbitration Award passed in favour of M/s. Trammo DMCC over disputed fertilizer purchase contracts. The court has directed the company to deposit principal sums of USD 16,427,310.80 and GBP 606,628.29 along with applicable interest. The company maintains that the arbitration award was obtained through manipulated documents and misrepresentation by the supplier, and is filing a Special Leave Petition before the Supreme Court to challenge the ruling. The company is also pursuing a curative petition in a related criminal case against the supplier. The total exposure including interest runs into several hundred crore rupees in foreign currency.
Negative for shareholders — a significant foreign-currency liability of roughly $17 million plus interest has been crystallised by a court order, though the company is appealing to the Supreme Court. Until the appeal is decided, the stock may see pressure due to the enforcement risk.