ION Exchange India Limited has secured a significant legal victory with a court dismissing an arbitral award of ₹174.80 crore that was previously imposed against the company. This favorable ruling provides substantial financial relief to the water treatment and environment engineering solutions provider.

Legal Victory Details

The court's decision to dismiss the arbitral award represents a major development for ION Exchange, eliminating a substantial financial liability from its books. The dismissed award amount of ₹174.80 crore would have represented a significant financial burden for the company had it been upheld.

Financial Implications

The dismissal of this substantial monetary award is expected to have positive implications for ION Exchange's financial position. By avoiding this significant payout, the company can preserve its cash resources and maintain better financial flexibility for its core business operations and growth initiatives.

Company Background

ION Exchange operates in the water treatment and environment engineering sector, providing solutions for water purification, waste water treatment, and related environmental services. The resolution of this legal matter removes a potential overhang that could have impacted the company's financial planning and business operations.

This legal outcome demonstrates the company's successful defense of its position in the arbitration proceedings and subsequent court challenge, providing clarity on this significant financial matter.

Ion Exchange (India) Limited has achieved a significant legal victory with the dismissal of an arbitral award in its ongoing litigation with Angeripalayam Common Effluent Treatment Plant Limited (ACETP). The company informed stock exchanges about this favorable development through a regulatory filing dated January 12, 2026.

Arbitral Award Details

The Sole Arbitrator, Mr. S. Parthasarathy, Senior Advocate, passed an arbitral award holding that both the claim and counter-claim in the ACETP matter are barred by the law of limitation. This ruling has resulted in the complete dismissal of both parties' claims.

Background of the Litigation

The original dispute arose from ACETP's claim against Ion Exchange for alleged non-performance of an Effluent Treatment Plant. ACETP had sought compensation for various damages including:

• Capital cost recovery
• Loss of production claims
• Plant failure compensation
• Operational cost reimbursement

The company had previously disclosed this litigation in August 2023 as part of its continuing disclosure obligations under SEBI regulations.

Financial Impact

The dismissal of the arbitral award provides significant financial relief to Ion Exchange. The ₹17.48 crore amount, along with associated interest, was previously forming part of the company's contingent liability disclosure in its notes to accounts. With this favorable ruling, this contingent liability has been effectively removed from the company's books.

Regulatory Compliance

Ion Exchange filed this update in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure follows the requirements outlined in SEBI Circular no. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024, regarding updates on pending litigation developments.

Company Secretary and Compliance Officer Nikisha Solanki signed the regulatory filing, ensuring proper compliance with stock exchange notification requirements for both BSE and NSE where the company's shares are listed.