Pasari Spinning Mills Limited has issued a formal response to the Bombay Stock Exchange regarding significant price movement in its shares observed on March 21, 2026. The company's clarification, dated March 24, 2026, addresses the exchange's surveillance inquiry under Regulation 30 requirements.

Company's Official Response

In its communication to the BSE Department of Surveillance, Pasari Spinning Mills stated that it is not aware of any information or events, including impending announcements, that could have influenced the price or volume behavior of its shares. The company emphasized its commitment to regulatory compliance and transparency in market communications.

Regulatory Compliance Confirmation

Managing Director Krishna Kumar Gupta confirmed that all material information and events required to be disclosed under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 have been duly disclosed to the stock exchange. This statement reinforces the company's adherence to mandatory disclosure norms.

Market Movement Attribution

The company attributed the share price movement to market-driven factors rather than any company-specific developments. Additionally, Pasari Spinning Mills acknowledged that broader macroeconomic and geopolitical developments, including ongoing global conflicts, may have an indirect impact on market sentiment and consequently influence share price movements.

Company Leadership

The response was signed by Krishna Kumar Gupta, Managing Director with DIN 00003880. The company operates under CIN L85110KA1991PLC012537 and maintains its corporate presence in Bangalore with operations accessible through its website and official communication channels.

Pasari Spinning Mills Limited has secured a significant legal victory with the Karnataka High Court granting a stay on execution proceedings that had threatened the company's assets. The Hon'ble High Court of Karnataka issued a stay order on January 9, 2026, halting the sale proceedings arising from the Proclamation of Sale issued by the Commercial Court, Mysuru.

Proclamation of Sale Details

The Commercial Court of Mysuru had issued a Proclamation of Sale dated November 3, 2025, which the company received on December 18, 2025. The proclamation pertained to enforcement proceedings for recovery of alleged dues totaling ₹7.03 crores in the execution case Com.Ex./249/2023 filed by Cotton Corporation of India Limited.

High Court Intervention and Stay Order

The Karnataka High Court, comprising Hon'ble Mrs. Justice Anu Sivaraman and Hon'ble Mr. Justice Vijaykumar A. Patil, granted the stay in Commercial Appeal No. 53/2022. The court's intervention came just days before a scheduled auction on January 12, 2026, providing crucial relief to the textile company.

Background of Legal Proceedings

The stay order relates to the original execution proceedings in Com.Ex./249/2023 filed by Cotton Corporation of India Limited against Pasari Spinning Mills and its Managing Director. The case stems from a Commercial Arbitration Suit No. 127/2006, where an arbitral award dated July 24, 2006, was upheld by the Commercial Court, Bengaluru on January 31, 2020.

Company's Legal Arguments and Court's Decision

Pasari Spinning Mills' legal counsel argued that the company was classified as a sick industry under The Sick Industrial Companies (Special Provisions) Act, 1985. The company contended that under Section 22 of this Act, the initiation and continuation of arbitration proceedings were impermissible, and the arbitrator's appointment was unilateral.

The High Court granted the stay subject to Pasari Spinning Mills furnishing security to the satisfaction of the executing court. The judges noted that the matter requires detailed consideration, leading to their decision to halt the execution proceedings pending further hearings.

Regulatory Compliance and Disclosure

The company received the court order on January 13, 2026, and promptly informed the BSE under Regulation 30 of SEBI (LODR) Regulations, 2015. Managing Director Krishna Kumar Gupta (DIN: 00003880) signed the disclosure, stating that the financial impact cannot be quantified at this stage and remains under examination. The company also provided clarification regarding the delay in submission of additional details, citing coordination with legal advisors in both Mysuru and Bengaluru.

The case is scheduled for the next hearing on February 11, 2026, where the High Court will conduct a detailed review of the appeal challenging the original arbitration proceedings and subsequent execution actions.