DIC India , a leading player in the printing inks and allied materials industry, has secured a significant interim award in an ongoing arbitration proceeding. The company announced on August 21, 2025, that it has been granted an interim award of 20.9 million rupees (approximately 2.09 crore rupees) for outstanding dues owed by Agam Agochars Private Limited.

Arbitration Details

The arbitration process, which began earlier this year, stems from DIC India's efforts to recover outstanding payments from Agam Agochars Private Limited. On August 20, 2025, the Honorable Sole Arbitrator passed an interim award in favor of DIC India, allowing the company's application filed under Section 31(6) of the Arbitration and Conciliation Act, 1996.

Breakdown of the Award

The interim award includes the following components:

1. A principal sum of 20.89 million rupees (2.09 crore rupees) towards admitted outstanding dues.
2. Interest at a rate of 18% per annum, compounded monthly, from the respective due dates of invoices until the date of filing the Statement of Claim.
3. Pendente-lite and future interest at a rate of 6% per annum (simple interest) on the principal sum from the date of filing the Statement of Claim until the date of actual payment.

Ongoing Proceedings

While this interim award marks a positive development for DIC India, the arbitration proceedings are still ongoing. The company had also filed an application under Section 23(2A) read with Section 16 of the Arbitration and Conciliation Act, seeking dismissal of a counter-claim filed by Agam Agochars. The Arbitral Tribunal has disposed of this application at the current stage, leaving issues related to the counter-claim open for examination during the final adjudication.

Next Steps

The matter is now scheduled for framing of issues on September 4, 2025. This step will further define the scope of the arbitration and set the stage for the final resolution of the dispute.

Company Statement

In its regulatory filing, DIC India stated, "The Company wishes to disclose the details of the Interim Award dated August 20, 2025 passed by the Ld. Arbitrator." This disclosure was made in compliance with SEBI regulations on material events and information.

Market Impact

While the interim award represents a positive outcome for DIC India, investors and stakeholders should note that the arbitration process is still ongoing. The final impact on the company's financials will depend on the ultimate resolution of the dispute and the recovery of the awarded amount.

DIC India continues to trade on the BSE, NSE, and the Calcutta Stock Exchange. Shareholders and potential investors are advised to monitor further developments in this arbitration process.

DIC India Limited (NSE: DICIND, BSE: 500089) is facing a new legal challenge as the Income Tax Department has filed an appeal against the company in the Kolkata High Court. The appeal contests a previous ruling by the Income Tax Appellate Tribunal (ITAT) that was favorable to DIC India.

Dispute Details

The tax dispute centers around two key issues:

1. Royalty expenses
2. Transfer pricing adjustments

These matters pertain to the assessment year 2014-15, with the contested tax amount totaling INR 2.96 crores.

Timeline of Events

• The ITAT had previously ruled in favor of DIC India.
• Approximately two years after the ITAT's decision, the Principal Commissioner of Income Tax-2, Kolkata, has now filed this appeal in the High Court.

Company's Response

DIC India has stated that it will prepare and file a suitable reply once the High Court admits the appeal and requests a submission. The company's stance suggests it is ready to defend its position in this ongoing tax matter.

Regulatory Compliance

In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, DIC India has formally notified the stock exchanges about this development. The disclosure was made in accordance with SEBI Circular SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023.

Potential Impact

While the financial implication of INR 2.96 crores has been disclosed, the actual impact on DIC India will depend on the High Court's decision. Investors and stakeholders will likely be watching this case closely, as its outcome could affect the company's financial position.

DIC India Limited, a well-established player in the Indian market, continues to navigate through regulatory and tax challenges. The company's proactive approach in disclosing this information demonstrates its commitment to transparency with its shareholders and the market at large.