Comfort Intech Invokes Arbitration Against Orient Electric Over Vendor Agreement Breach

Comfort Intech Limited has taken a significant step in resolving a dispute with Orient Electric Limited by invoking arbitration proceedings. The conflict stems from an alleged breach of a Vendor Agreement executed on April 20, 2024, which established a business association between the two companies for online sales.

Dispute Details

According to Comfort Intech's filing with the BSE, the company alleges that Orient Electric has violated the terms of their agreement. Despite attempts to reach an amicable resolution, the parties have been unable to settle their differences, prompting Comfort Intech to initiate arbitration.

Arbitration Process

The arbitration will be conducted under Clause 21(D) of the Vendor Agreement, following the procedures set forth by the Delhi International Arbitration Centre in New Delhi. This move aligns with the dispute resolution mechanism outlined in the original agreement between the two companies.

Financial Implications

While the exact quantum of claims remains undetermined, Comfort Intech's board of directors has expressed that the financial implications resulting from the alleged breach may be material. The specific amounts and details of the claims will be established during the course of the arbitration proceedings.

Regulatory Compliance

In compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, Comfort Intech has duly informed the BSE about this development. The company has provided the necessary details as required under the regulations, ensuring transparency with its stakeholders.

Looking Ahead

As the arbitration process unfolds, investors and market watchers will be keenly observing its progress and potential impact on both Comfort Intech and Orient Electric. The outcome of this dispute could have significant implications for the business relationship between the two companies and their respective operations in the online sales sector.

Shareholders and interested parties can find more information about this development on Comfort Intech's website at www.comfortintech.com .