Nectar Lifesciences Limited has announced the execution of an inter-corporate loan agreement with its wholly owned subsidiary Avensis Exports Private Limited (AEPL) for INR 100 crores. The company informed stock exchanges about this development on March 12, 2026, in compliance with SEBI listing regulations.

Loan Agreement Details

The inter-corporate loan agreement was executed on March 11, 2026, between Nectar Lifesciences as the lender and Avensis Exports Private Limited as the borrower. The arrangement involves an unsecured loan facility with specific terms designed to support the subsidiary's operational requirements.

Purpose and Utilization

The borrower will utilize the loan amount towards general corporate purposes and business requirements. This funding arrangement is expected to support Avensis Exports Private Limited's operational activities and strategic initiatives as a wholly owned subsidiary of Nectar Lifesciences.

Related Party Transaction Framework

The transaction qualifies as a related party transaction since Avensis Exports Private Limited is a wholly owned subsidiary of Nectar Lifesciences Limited. However, the company has confirmed that the transaction is conducted at arm's length pricing, ensuring compliance with regulatory requirements.

Regulatory Compliance

The loan agreement disclosure was made pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company provided comprehensive details as required under the SEBI Master Circular dated January 30, 2026, ensuring full transparency with stakeholders.

The agreement does not contain provisions for director appointment rights, share subscription preferences, or capital structure change restrictions. This straightforward loan arrangement focuses on providing financial support to the subsidiary while maintaining regulatory compliance and corporate governance standards.

Nectar Lifesciences Limited has secured a favorable legal outcome with the Mumbai City Civil Commercial Court returning a plaint filed against the company, effectively disposing of the litigation with no liability.

Court Dismisses Suit on Jurisdictional Grounds

The Mumbai City Civil Commercial Court returned the plaint filed by Sanjay Chemicals India Private Limited on March 07, 2026, citing a lack of jurisdiction to hear the matter. The company received notification of the court's decision via email on the same date.

The plaintiff had initiated legal proceedings seeking substantial financial recovery from Nectar Lifesciences. However, the company successfully contested the suit on both jurisdictional and temporal grounds.

Financial Claims and Company's Defense

Sanjay Chemicals India Private Limited had sought recovery of significant amounts through the litigation:

Nectar Lifesciences mounted a robust defense, successfully arguing two key points that led to the favorable outcome. The company contended that the Mumbai court lacked proper jurisdiction to adjudicate the matter and that the plaintiff's claims were time-barred under applicable legal provisions.

Litigation Outcome and Financial Impact

The court's decision to return the plaint has resulted in the complete disposal of the suit with no adverse consequences for Nectar Lifesciences. The company has confirmed that there are no financial implications arising from this litigation outcome.

Regulatory Compliance

The disclosure was made in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. This update follows the company's previous litigation disclosure dated October 07, 2024, ensuring stakeholders remain informed of material legal developments.

The favorable resolution eliminates potential financial exposure and demonstrates the company's effective legal strategy in defending against unfounded claims.