Dalmia Bharat Sugar & Industries has announced the completion of its demerger scheme with Dalmia Bharat Refractories Limited (DBRL), marking a significant corporate restructuring for the company. The scheme became effective on October 9, following the filing of the National Company Law Board Chennai Bench order with the Registrar of Companies.

Key Details of the Demerger

The demerger involves the following crucial aspects:

Implications for Shareholders

The record date of October 31 is crucial for shareholders of Dalmia Bharat Sugar & Industries. This date will determine the eligibility of shareholders to receive shares in the resulting company, Dalmia Bharat Refractories Limited, as per the demerger scheme.

Corporate Action Timeline

1. Scheme Approval: The scheme was approved by the Hon'ble National Company Law Board, Chennai Bench, on September 12.
2. Effective Date: The scheme became effective on October 9, upon filing the order with the Registrar of Companies.
3. Record Date: Set for October 31, to identify eligible shareholders for share allotment in DBRL.

This corporate action represents a significant step for Dalmia Bharat Sugar & Industries, potentially impacting its business structure and shareholder value. Investors and market watchers will be keenly observing the implementation of this demerger and its effects on both the demerged and resulting companies.

Shareholders of Dalmia Bharat Sugar & Industries should take note of the record date and expect further communications from the company regarding the share allotment process in Dalmia Bharat Refractories Limited.

In a significant legal victory for Dalmia Bharat Sugar & Industries , the Madras High Court has dismissed a substantial compensation claim worth ₹120 crore against the company. The court's ruling, which favors Dalmia Bharat Sugar & Industries, puts an end to a long-standing dispute over surface rights related to mining leases.

Details of the Court Ruling

According to a disclosure filed by Dalmia Bharat Sugar & Industries to the stock exchanges, the Madras High Court pronounced its judgment on September 10. The court's decision, received by the company on September 30, granted relief from annual compensation for surface rights in respect of mining leases. The ruling specifically addressed two significant demands:

1. A demand of ₹79.00 crore for the period from 1966 to 2017 has been quashed.
2. An additional demand of ₹41.00 crore for the period from 2017 to 2024 has also been quashed.

Background of the Case

The litigation was related to demands for annual compensation for surface rights concerning mining leases dating back to 1966. This case had been pending before the Madras High Court and was considered a material event by the company.

Implications for Dalmia Bharat Sugar & Industries

The court's decision to quash the entire ₹120.00 crore claim is a substantial relief for Dalmia Bharat Sugar & Industries. This ruling eliminates a significant potential financial liability that had been hanging over the company for years.

Company's Response

Rachna Goria, Company Secretary and Compliance Officer of Dalmia Bharat Sugar & Industries, confirmed the court's decision in a filing to the stock exchanges. The company made this disclosure in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

This favorable court ruling is expected to have a positive impact on Dalmia Bharat Sugar & Industries' financial position by removing a substantial contingent liability. Investors and stakeholders will likely view this development as a positive sign for the company's future operations and financial stability.