Bihar Sponge Iron Limited (BSIL) has escalated its legal battle against South Eastern Coalfields Limited (SECL) by filing a new writ petition in the Chhattisgarh High Court. The dispute centers around penalties amounting to Rs 215.28 lacs imposed by SECL on BSIL for short lifting of coal quantity under their Fuel Supply Agreement (FSA) during the fiscal year 2011-12.

Legal Proceedings and Attempted Resolution

The Chhattisgarh High Court had previously directed both parties to appear before SECL's General Manager (Marketing & Sales) on April 21, with the aim of resolving the matter within 60 days. Following this directive, a meeting was held at SECL's office in Bilaspur to address the ongoing disputes.

However, BSIL claims that SECL's General Manager did not adequately address the concerns raised by the company during this meeting. Consequently, BSIL has decided to pursue legal recourse, leading to the filing of a new writ petition (WPC/24721) against SECL's order/decision before the Chhattisgarh High Court.

Background of the Dispute

The conflict stems from penalties imposed by SECL on BSIL for allegedly falling short of the coal lifting quantity agreed upon in their Fuel Supply Agreement for the financial year 2011-12. BSIL has been contesting these penalties, arguing that they were unjustly imposed.

Company's Stance and Financial Impact

In its disclosure to the BSE, Bihar Sponge Iron Limited stated that the legal dispute is not expected to have a material impact on the company, considering the size of its operations. This suggests that while the disputed amount of Rs 215.28 lacs is significant, it does not pose a substantial threat to the company's overall financial health.

Regulatory Compliance

BSIL has filed this disclosure in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company's Company Secretary and Compliance Officer, Vimal Prasad Gupta, has certified that the information provided in the disclosure is true, correct, and complete to the best of their knowledge and belief.

As the legal proceedings unfold, stakeholders will be watching closely to see how this dispute impacts both Bihar Sponge Iron Limited and its relationship with South Eastern Coalfields Limited. The outcome of this case could have implications for future fuel supply agreements and dispute resolution processes in the coal sector.

Bihar Sponge Iron Limited (BSIL) has found itself embroiled in a legal dispute as 18 former employees have filed a petition against the company in the Labour Court, Jamshedpur. The ex-employees are seeking payment of wages amounting to Rs 3.64 crore, alleging that their employment has not been terminated but their wages remain unpaid.

Legal Notice Details

The company received a notice from the Presiding Officer of the Labour Court, Jamshedpur on September 3, 2025. The petition, filed under Section 15(2) of the Payment of Wages Act, 1936, claims that wages payable to the ex-employees have not been disbursed, despite their employment status allegedly remaining intact.

Company's Response

BSIL has stated that it plans to contest the matter and is in the process of filing an appropriate response before the concerned authority or court. The company emphasized that it will defend its position in accordance with applicable laws.

Financial Implications

In a disclosure to the BSE, Bihar Sponge Iron Limited addressed the potential financial impact of the claim:

"Considering the size of Company's operations, there will not be a material impact or impact will be limited to the extent of claim," the company stated in its filing.

Company's Stance

BSIL has made it clear that by disclosing this information, it is neither recognizing the claim nor confirming any amount related to the petition. The company stated, "This is just a purpose of information to BSE Ltd., Company is neither recognizing the claim nor confirming any amount in this reference."

Regulatory Compliance

The disclosure was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. BSIL has assured that the information provided in 'Form-A' is true, correct, and complete to the best of their knowledge and belief.

As the legal proceedings unfold, stakeholders will be watching closely to see how this wage dispute impacts Bihar Sponge Iron Limited's operations and financial standing in the coming months.