DIC India , a leading player in the printing inks and allied materials industry, faces a new legal challenge as Agam Agochars Private Limited has filed a petition to set aside the interim arbitration award of ₹2.09 crore. The company disclosed this development following the service of an advance copy of the challenge petition.

Background of the Arbitration Award

The arbitration process began earlier when DIC India sought 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 under Section 31(6) of the Arbitration and Conciliation Act, 1996.

Legal Challenge and Court Proceedings

On December 10, 2025, Agam Agochars served an advance copy of their petition challenging the interim award under Section 34 of the Arbitration and Conciliation Act, 1996. The petition has been filed before the Delhi High Court as OMP(COMM) No. 539 of 2025, seeking to set aside the entire interim award granted to DIC India.

Latest Court Developments

The matter was listed before the Delhi High Court on December 17, 2025. The Court has issued notice upon DIC India and granted it time to file its reply before the next date of hearing. The case is scheduled for the next hearing on December 22, 2025, where DIC India will have the opportunity to present its response to the challenge petition.

Previous Enforcement Actions

This challenge comes after DIC India had filed an execution petition for enforcement of the interim award, as disclosed by the company on November 29, 2025. The enforcement proceedings were initiated to recover the awarded amount following the favorable arbitration decision.

Interest Calculations and Components

The interim award structure includes multiple interest components designed to compensate DIC India for the delayed payments:

• Historical Interest: Calculated at 18% per annum, compounded monthly, from respective invoice due dates until the Statement of Claim filing
• Ongoing Interest: Simple interest at 6% per annum from the Statement of Claim date until actual payment
• Principal Amount: ₹2.09 crore representing the core outstanding dues admitted by the arbitrator

Current Status and Implications

The legal challenge creates uncertainty regarding the recovery timeline for DIC India. While the company had secured a favorable interim award, the Section 34 petition filed by Agam Agochars could potentially delay or complicate the enforcement process. The Delhi High Court will now examine the grounds for challenging the arbitration award during the upcoming hearing.

Regulatory Compliance

DIC India made this disclosure in compliance with SEBI regulations, specifically under Regulation 30 and Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company continues to keep stakeholders informed about material developments in this ongoing legal matter.

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.