In a significant legal victory for Dalmia Bharat Sugar & Industries , the Madras High Court has dismissed a substantial compensation claim worth ₹120 crore against the company. The court's ruling, which favors Dalmia Bharat Sugar & Industries, puts an end to a long-standing dispute over surface rights related to mining leases.

Details of the Court Ruling

According to a disclosure filed by Dalmia Bharat Sugar & Industries to the stock exchanges, the Madras High Court pronounced its judgment on September 10. The court's decision, received by the company on September 30, granted relief from annual compensation for surface rights in respect of mining leases. The ruling specifically addressed two significant demands:

1. A demand of ₹79.00 crore for the period from 1966 to 2017 has been quashed.
2. An additional demand of ₹41.00 crore for the period from 2017 to 2024 has also been quashed.

Background of the Case

The litigation was related to demands for annual compensation for surface rights concerning mining leases dating back to 1966. This case had been pending before the Madras High Court and was considered a material event by the company.

Implications for Dalmia Bharat Sugar & Industries

The court's decision to quash the entire ₹120.00 crore claim is a substantial relief for Dalmia Bharat Sugar & Industries. This ruling eliminates a significant potential financial liability that had been hanging over the company for years.

Company's Response

Rachna Goria, Company Secretary and Compliance Officer of Dalmia Bharat Sugar & Industries, confirmed the court's decision in a filing to the stock exchanges. The company made this disclosure in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

This favorable court ruling is expected to have a positive impact on Dalmia Bharat Sugar & Industries' financial position by removing a substantial contingent liability. Investors and stakeholders will likely view this development as a positive sign for the company's future operations and financial stability.

The National Company Law Tribunal (NCLT) Chennai has sanctioned the scheme of arrangement for the demerger of Dalmia Bharat Sugar & Industries Limited's (DBSIL) DMC Unit and GT Unit into Dalmia Bharat Refractories Limited (DBRL). This strategic move aims to streamline operations and enhance value for shareholders.

Key Details of the Demerger

• Approval Date: The NCLT order was pronounced on September 12, 2025.
• Appointed Date: July 1, 2023
• Share Exchange Ratio: Shareholders will receive 1 equity share of Dalmia Bharat Refractories for every 48.18 equity shares held in Dalmia Bharat Sugar.

Strategic Rationale

The demerger is expected to bring several benefits:

1. Segregation of non-core businesses from the sugar business
2. Focused management for DMC Unit, GT Unit, and sugar business
3. Increased flexibility for value extraction and fund-raising

Units Being Demerged

1. DMC Unit: Dalmia Magnesite Corporation
2. GT Unit: Govan Travels

Regulatory Compliance

The scheme has received observations and no-objection letters from all statutory authorities, including:

• Bombay Stock Exchange (BSE)
• National Stock Exchange (NSE)
• Calcutta Stock Exchange (CSE)
• Metropolitan Stock Exchange of India Limited (MSE)

Next Steps

The scheme will become effective once the certified copy of the NCLT order is filed with the Registrar of Companies, Chennai.

Management Commentary

Rachna Goria, Company Secretary of Dalmia Bharat Sugar & Industries Limited, stated, "This demerger will enable efficient and focused management individually on DMC Unit, GT Unit, and sugar business, leading to better value creation for our shareholders."

The demerger of DMC and GT Units from Dalmia Bharat Sugar into Dalmia Bharat Refractories marks a significant step in the company's strategic realignment. It is expected to unlock value for shareholders and allow for more focused growth in each business segment.