HCL Infosystems Limited has received a significant legal development in an ongoing litigation matter involving its wholly owned subsidiary. The High Court of Himachal Pradesh has issued an interim order allowing the company's subsidiary to withdraw a substantial amount deposited in connection with a dispute.

Court Order Details

The High Court of Himachal Pradesh at Shimla issued an order dated December 31, which was received by the company on January 1. This interim order pertains to an appeal filed by HPSEBL (Himachal Pradesh State Electricity Board Limited) against an award dated March 15.

Financial Impact and Withdrawal Terms

HCL Infotech Limited, the wholly owned subsidiary of HCL Infosystems Limited, has been permitted to withdraw ₹26.93 crore (₹269.30 million) deposited by HPSEBL along with complete interest. The withdrawal comes with specific conditions that must be fulfilled to the court's satisfaction.

Legal Framework and Compliance

The disclosure has been made under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. This follows previous disclosures made by the company on March 18 and May 13, indicating this is part of an ongoing legal matter.

The company has complied with the regulatory requirements by providing detailed information about the litigation status, including brief details of the litigation and opposing party, changes in status and developments in proceedings, quantum of claims involved, and impact assessment on the company's position.

Future Legal Proceedings

Both parties retain the right to file appeals against this interim order, indicating that the litigation may continue through higher courts. The current order represents an interim relief rather than a final resolution of the dispute between HCL Infotech Limited and HPSEBL.

The company has informed both the Bombay Stock Exchange and National Stock Exchange of India about this development, ensuring transparency with stakeholders and compliance with listing obligations.

HCL Infosystems Limited has received a significant GST demand order totaling ₹4.38 crores from tax authorities, relating to alleged discrepancies in GST return filings for the financial year 2021-22. The company disclosed this development through a regulatory filing, pursuant to SEBI listing regulations.

GST Demand Order Details

The Order-in-Original was issued by the Joint Commissioner, Central Goods Service Tax, Noida, under the provisions of the Central Goods and Services Tax Act, 2017. The demand order addresses an alleged mismatch between the turnover reported by the company in Form GSTR-3B and the details reflected in Form GSTR-7.

Company's Response and Position

HCL Infosystems has strongly contested the demand order, maintaining that it is not sustainable in law. The company attributes the alleged discrepancy primarily to statutory timing differences and reconciliation issues between various GST returns, emphasizing that there was no suppression of facts, misstatement, or intent to evade tax.

The company has stated that it duly discharged its applicable tax liabilities in the relevant periods and believes it has good grounds on merits as well as on legal and procedural aspects. Management is currently evaluating and examining its options for appropriate legal remedies in accordance with the law.

Financial and Operational Impact

Regarding the potential impact on business operations, HCL Infosystems has indicated that it does not expect any material adverse impact on its financial position or operations at this stage. The company plans to challenge the order, citing timing differences.

Regulatory Compliance

The disclosure was made under Regulation 30 read with sub-para 20 of Para A of Part A of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The company continues to maintain its position that the demand lacks merit and plans to pursue appropriate legal channels to address the matter.