Shree Digvijay Cement Co.Ltd has informed the Exchange about General Updates
SHREDIGCEM · price
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Shree Digvijay Cement has won a key legal battle: the NCLT Ahmedabad dismissed a petition by CGE (its joint venture with Continuum Green Energy) that sought to initiate corporate insolvency proceedings against the company, calling it frivolous. An Arbitral Tribunal has now been constituted under a Gujarat High Court order to resolve the underlying dispute over a Power Purchase Agreement for green power supply. The High Court also granted interim relief ensuring that power supply to the company will not be disconnected, while the company continues paying current electricity dues. The company has deposited Rs 9 crore with the High Court as a goodwill gesture towards past dues, while it claims Rs 20.42 crore from CGE and Continuum for delayed commissioning. The company states this dispute is not material and will not affect its operations or financial position.
This is a positive development for shareholders — the insolvency threat has been completely removed and the company has secured uninterrupted power supply during arbitration. The dispute size is small relative to the company's overall business, so no significant financial impact is expected.