Autoline Industries Limited has disclosed receiving an adverse judgment from the Oakland County Circuit Court in Michigan, concluding litigation that began with a complaint filed by CJ Holdings North America, LLC. The company informed stock exchanges about this development under Regulation 30 of SEBI listing requirements on February 19, 2026.

Court Judgment Details

The Oakland County Circuit Court passed its judgment on February 17, 2026, which the company received on February 18, 2026. The court ruled in favor of the plaintiff, CJ Holdings North America, LLC, awarding significant financial damages to the company.

Background of the Dispute

The litigation originated from a settlement agreement that Autoline Industries entered into with CJ Holdings North America, LLC on April 18, 2017. Under this agreement, the company committed to paying USD 1,700,000 to settle the plaintiff's claims, subject to Reserve Bank of India approval for payment in tranches.

Following RBI approval, the company successfully paid USD 1,230,000 to the plaintiff. However, USD 470,000 remained unpaid, leading to the current legal proceedings and subsequent judgment.

Enforcement and Next Steps

The company has clarified that this judgment from a non-reciprocating territory is not directly executable in India. The enforcement would require a fresh judicial process in India through the institution of a new suit, following jurisdictional and procedural rules applicable to original suits under the Code of Civil Procedure.

Autoline Industries stated that it is currently analyzing the judgment and developing its strategy, including consideration of the domestication process for the foreign judgment. The company's management is evaluating various legal options available under Indian law for addressing this international court ruling.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, and SEBI Circular dated January 30, 2026. The company had previously disclosed brief details of this litigation to stock exchanges on November 20, 2024, when the complaint was initially filed by the plaintiff.

This development represents a significant legal and financial challenge for Autoline Industries Limited as it navigates the complexities of international litigation and potential enforcement proceedings in India.

Autoline Industries Limited has completed a significant milestone in its divestment strategy by transferring its remaining shareholding in subsidiary Autoline Industrial Parks Limited (AIPL). The company announced the completion of this transaction through a regulatory filing dated February 18, 2026, marking another step in its strategic restructuring process.

Transaction Details and Financial Impact

The company successfully transferred 38,39,399 shares representing a 4.85% stake in AIPL on February 17, 2026. The transaction generated substantial proceeds for the company and its subsidiary.

Background of the Divestment Process

This transaction forms part of a comprehensive divestment strategy that began in 2023. The original Share Purchase Agreement (SPA) was executed on August 08, 2023, with a supplemental agreement signed on September 18, 2025. The agreements covered the sale of 44.78% equity shares in AIPL, which was formerly a material subsidiary of Autoline Industries.

The divestment process has been structured in phases, with the company having previously disclosed its intention to sell its entire stake in AIPL. Autoline Industrial Parks Limited transitioned from being a material subsidiary to an associate company effective April 15, 2025, reflecting the reduced shareholding.

Current Shareholding Structure

Following the February 17, 2026 transaction, Autoline Industries Limited now holds 0.00% stake in AIPL. However, the divestment process is not yet complete, as the company's wholly owned subsidiary, Autoline Design Software Limited (ADSL), still retains a 1.52% stake equivalent to 12,00,000 shares in AIPL.

Buyer Profile and Transaction Nature

MNSC Realty & Developers Pvt. Ltd., the acquiring company, is incorporated under the Companies Act, 2013, and operates in real estate activities along with other business verticals. The regulatory filing confirms that the buyer does not belong to the promoter group or group companies of Autoline Industries, ensuring the transaction maintains arm's length characteristics.

The total consideration for the complete divestment amounts to Rs. 95,16,62,991 for Autoline Industries and Rs. 3,33,37,009 for ADSL. The transaction has been structured as a non-related party transaction and does not fall under any scheme of arrangement.

Financial Position of AIPL

As of March 31, 2025, Autoline Industrial Parks Limited reported a net worth of Rs. 1,15,83,82,301, while recording nil turnover or income for the financial year. This financial position provides context for the strategic decision to divest from the subsidiary.

The completion of this divestment represents a significant corporate restructuring move for Autoline Industries, allowing the company to focus on its core operations while realizing value from its subsidiary holdings. The final transfer of the remaining 1.52% stake is scheduled for completion by March 05, 2026.