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.

Dalmia Bharat Sugar & Industries , a prominent player in the Indian sugar industry, has announced a strategic move to expand its operations internationally. The company has entered into a partnership with Eagle Agrotech to establish sugarcane plantation and factory operations in Tanzania, marking its first foray into the East African sugar market.

Partnership Details

Dalmia Bharat Sugar and Industries Limited has entered into a Share Subscription cum Shareholders Agreement with Eagle Agrotech Holdings Limited (EAHL) and H.E. Mr. Mohamed Ali Rashed Alabbar. This agreement outlines the terms of their collaboration in Tanzania.

Investment and Ownership

As part of the agreement, Dalmia Bharat Sugar will acquire a 51% stake in EAHL, a holding company incorporated in Abu Dhabi, UAE. The investment will be made through a mix of shares and other instruments at face value, with a total cash consideration of up to $1.00 million. The acquisition is expected to be completed within six months.

Project Scope

The partnership aims to develop sugar production infrastructure in Tanzania through Eagle Agrotech Tanzania Limited (EATL), a subsidiary of EAHL. EATL is currently in the process of establishing sugarcane plantations and a sugar factory in the country. This move aligns with Dalmia Bharat Sugar's strategy to extend its footprint beyond India and tap into the growing East African market.

Strategic Implications

This international expansion represents a significant step for Dalmia Bharat Sugar, allowing the company to:

• Diversify its geographical presence
• Gain access to new markets
• Leverage its expertise in sugar production on a global scale
• Potentially benefit from Tanzania's agricultural resources and strategic location in East Africa

Regulatory Compliance

The company has affirmed that the acquisition does not fall under related party transactions and does not require any specific governmental or regulatory approvals.

As Dalmia Bharat Sugar embarks on this new venture, the sugar industry will be watching closely to see how this East African expansion unfolds and what it might mean for the company's future growth and market position.