Update on earlier disclosure dated 26.02.2024 for filling a case before NCLT by Financial creditor of the company, company entered into Settlement agreement.
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Syschem India has settled an ongoing dispute with M/S Lotus Builders that was pending before the NCLT Chandigarh bench. The original dispute involved dishonour of cheques issued by Syschem towards payment obligations to Lotus Builders. The parties have signed a Settlement Agreement on June 4, 2026, agreeing to pay Rs 1.25 Crore (One Crore Twenty-Five Lakhs) as full and final settlement of all claims and counterclaims. Following the settlement, the NCLT proceedings will be withdrawn. The company has stated there is no material adverse impact on its operations, other than the financial cost of the settlement amount.
Shareholders should note a one-time cash outflow of Rs 1.25 Crore to close this long-pending legal matter, but the settlement removes the legal overhang from NCLT proceedings, reducing future uncertainty and potential litigation costs. Near-term stock impact is likely neutral to mildly positive as the dispute is resolved.