Josts Engineering Company has taken legal action against RENEW SOLAR ENERGY (JHARKHAND ONE) PRIVATE LIMITED, filing a lawsuit for the recovery of Rs 78.70 lakh, including interest. The suit, filed in the District Court of New Delhi, stems from an outstanding payment for machinery supplied and the alleged wrongful invocation of a bank guarantee.

Details of the Lawsuit

The company disclosed this information in a filing to the BSE under Regulation 30 of SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015. According to the filing, the lawsuit was initiated on September 15, in the Courts of District Judge, District New Delhi, Patiala House Court Delhi.

Financial Implications

Josts Engineering Company has provided insights into the potential outcomes of the litigation:

1. If the case is decided against Josts Engineering Company (the plaintiff), there will be no financial outflow for the company.
2. In the event of a successful litigation, the company expects to recover the entire principal outstanding amount plus claimable interest.

Background of the Dispute

The dispute arises from two main issues:

1. Outstanding payment for machinery supplied to RENEW SOLAR ENERGY (JHARKHAND ONE) PRIVATE LIMITED
2. Alleged wrongful invocation of a bank guarantee by the defendant

Company's Statement

Babita Kumari, Company Secretary & Compliance Officer of Josts Engineering Company Limited, stated in the BSE filing:

"We wish to inform you that our Company has filed suit for recovery against RENEW SOLAR ENERGY (JHARKHAND ONE) PRIVATE LIMITED... for an amount of Rs. 78,70,280/- (Rupees Seventy Eight Lakh Seventy Thousand Two Hundred Eighty Only) (including interest) towards outstanding payment of machinery supplied and wrongfully invocation of Bank Guarantee."

This legal action underscores the importance of contractual obligations and financial settlements in the engineering and renewable energy sectors. The outcome of this case may have implications for both companies involved and potentially set a precedent for similar disputes in the industry.

Josts Engineering Company Limited, a prominent player in the engineering sector, has announced a significant new order that promises to bolster its order book. The company has received a purchase order worth Rs. 6.52 crore from North Bihar Power Distribution Company Limited, marking a notable development in its business operations.

Order Details

The order, valued at Rs. 6,52,14,354.36 (including GST and other relevant charges), involves the design, manufacture, assembly, testing, supply, and delivery of three Malfunction Test Kits. These specialized kits are crucial for maintaining and troubleshooting power distribution systems, highlighting Josts Engineering Company's expertise in providing critical equipment for the power sector.

Project Timeline

According to the company's filing with the BSE, the purchase order was issued on September 9. Josts Engineering Company is required to fulfill the order within a five-month timeframe from the date of the purchase order.

Significance of the Order

This order from North Bihar Power Distribution Company Limited underscores Josts Engineering Company's strong position in the power equipment market. It also reflects the ongoing investments in India's power distribution infrastructure, particularly in the state of Bihar.

Company's Disclosure

In compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Josts Engineering Company promptly disclosed the order details to the stock exchange. The company's secretary, Babita Kumari, filed the intimation on September 12, demonstrating the company's commitment to transparency and regulatory compliance.

Conclusion

This new order is expected to contribute positively to Josts Engineering Company Limited's revenue stream in the coming quarters. It also reinforces the company's reputation as a reliable supplier of specialized engineering equipment for the power distribution sector.