Patel Engineering Limited has informed the Exchange about General Updates
PATELENG · price
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Awaiting price reaction for this filing.
Patel Engineering has informed exchanges that the Bombay High Court dismissed its Section 34 petition challenging an arbitration award dated February 1, 2020. The original award was in favor of Acron Developers Pvt Ltd, a former contractor at the company's Neotown, Bangalore project, awarding Acron approximately Rs. 26.56 crore (inclusive of pendente lite and post-award interest at 18% p.a.) plus Rs. 3.82 crore in arbitration costs, totaling about Rs. 30.38 crore. The dispute related to disagreements over actual constructed areas and other claims. The company is reviewing the order and plans to take further legal steps as advised by counsel to challenge the ruling.
This is a negative development for shareholders as the company has lost its appeal against a ~Rs. 30.38 crore liability, which may need to be provisioned in the books. However, the company has indicated it will pursue further legal remedies, which could limit the final financial impact.