Onward Technologies has achieved a significant legal victory with the Circuit Court of Cook County, Illinois vacating its earlier fund freezing order and dismissing the citation involving Citibank. This comprehensive resolution provides complete relief to the technology services company in litigation proceedings initiated by a former employee.

Court Order Details

The court has passed an order vacating its earlier directive that had frozen funds in the company's Citibank account up to USD 1,258,000.00. Additionally, the court dismissed the pending citation to Citibank in the matter, providing complete closure to the legal proceedings.

Background of Legal Matter

The litigation stemmed from proceedings initiated by an ex-employee of Onward Technologies, Inc., a wholly owned subsidiary of the company, against the subsidiary for alleged non-payment of certain wages. The matter involved a citation to discover assets, which had resulted in the temporary freezing of funds in the bank account.

Financial and Operational Impact

According to the company's disclosure, there is no subsisting enforceable monetary liability on Onward Technologies, Inc. as of the order date. The management stated that the company does not anticipate any material adverse impact on its financials or operations following the vacation of the judgment.

This favorable court outcome removes all legal uncertainties related to the case and allows the company to operate without any fund restrictions or pending litigation concerns in this matter.

Onward Technologies Limited has provided a detailed clarification to BSE Limited regarding the timing of its recent corporate announcement under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The clarification, dated February 02, 2026, addresses the disclosure timeline for an order that was announced on January 30, 2026.

Timeline of Events

The company explained that the order referenced in its earlier disclosure was received late in the evening of January 28, 2026, after regular business hours. This timing necessitated a comprehensive review process before the company could make its regulatory disclosure.

Review Process and Legal Consultation

Upon receiving the order, Onward Technologies initiated a detailed internal review process to assess its scope, implications, and materiality. The company engaged with external legal advisors as part of this comprehensive evaluation. Given the nature of the order and the need to ensure complete and accurate understanding, the review process extended into the following day.

Management's Explanation

Managing Director Jigar Mehta, with DIN 06829197, signed the clarification document digitally on February 02, 2026. The company emphasized that the timing of the disclosure was solely due to the late receipt of the order during non-business hours and the subsequent time required for legal review and internal assessment.

The management stated that there was no other reason, lapse, or intention on the part of the company for any delay in submission of the disclosure. The delay was attributed entirely to the operational necessity of conducting proper due diligence.

Regulatory Compliance Commitment

Onward Technologies reiterated its commitment to maintaining timely, transparent, and continuous disclosures in strict compliance with SEBI (LODR) Regulations, 2015, and applicable SEBI Circulars. The company's clarification demonstrates its focus on ensuring accurate and fair disclosure practices while adhering to regulatory requirements.

The clarification was addressed to BSE Limited's Corporate Relationship Department, referencing the company's script code BSE 517536. This proactive communication reflects the company's approach to maintaining transparency with regulatory authorities and stakeholders regarding its disclosure practices.