NewsCorporate ActionsSilverline Technologies Settles ₹35.98 Crore Litigation for ₹26 Crores, Clears Path for GrowthSilverline Technologies Settles ₹35.98 Crore Litigation for ₹26 Crores, Clears Path for Growth
Silverline Technologies has resolved a legal dispute with Apex Urban Co-operative Bank, agreeing to a ₹26 crore settlement, down from the original ₹35.98 crore claim. The company has already paid ₹7 crores and will pay the remaining ₹19 crores in installments by November. This settlement eliminates a major liability, improves the company's financial standing, and allows management to focus on core technology initiatives including AI, cloud services, and cybersecurity.
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Silverline Technologies Limited has successfully resolved a long-standing legal dispute with Apex Urban Co-operative Bank of Maharashtra and Goa Ltd. (in liquidation), marking a significant milestone for the company's financial and operational future.
Settlement Details
The technology firm has reached a court-recorded settlement of ₹26.00 crores, representing a substantial 28% reduction from the original claim of ₹35.98 crores. This agreement, approved by the High Court of Bombay, includes the withdrawal of all civil and criminal proceedings by the creditor.
Payment Structure
Silverline Technologies has already made progress on the settlement, having paid ₹7.00 crores through two installments:
- ₹2.00 crores in April
- ₹5.00 crores in May
The remaining ₹19.00 crores is scheduled to be paid in structured tranches between October and November, as follows:
| Due Date | Amount (₹ Cr) |
|---|---|
| 10 October | 3.00 |
| 20 October | 4.00 |
| 30 October | 4.00 |
| 10 November | 4.00 |
| 20 November | 4.00 |
All payments are to be made via cheques drawn on Axis Bank, Ram Maruti Road, Thane Branch.
Strategic Implications
This settlement carries significant strategic importance for Silverline Technologies:
- Liability Elimination: It removes a major legacy liability that has been reflected in contingent disclosures for several years.
- Improved Financial Standing: The resolution enhances the company's capital structure and financial visibility for lenders, rating agencies, and institutional investors.
- Governance Showcase: It demonstrates the company's commitment to strong governance and proactive legal resolution.
- Focus on Core Business: With this legal matter resolved, management can redirect its focus and resources towards core technology growth initiatives.
Future Outlook
Silverline Technologies is poised to channel its efforts into key areas of technological advancement, including:
- AI product development
- Cloud services
- Cybersecurity frameworks
The company's Board of Directors, which approved the settlement, has authorized Mr. Yakin Kumar Bansilal Joshi to execute the settlement terms.
Market Response
Following the announcement, Silverline Technologies addressed a query from the BSE regarding recent share price movements. The company clarified that it has promptly disclosed all price-sensitive information as required by regulations and attributed any significant price movements to market circumstances beyond its control.
This strategic settlement not only resolves a significant financial obligation but also positions Silverline Technologies for potential growth and innovation in the technology sector. Investors and stakeholders will likely watch closely to see how the company leverages this resolution to drive its future performance and market position.
