The Supreme Court has made its interim stay absolute regarding a Bombay High Court ruling concerning Kirloskar Brothers Ltd, providing significant relief to the company in its ongoing legal dispute. The apex court's order dated January 9, 2026, converts the temporary stay granted on October 17, 2025, into an absolute stay, subject to the final decision of the Bombay High Court in the pending appeal.

Supreme Court Order Details

The Supreme Court's comprehensive order addresses the trademark licensing dispute between Kirloskar Proprietary Limited and Kirloskar Brothers Limited. The court clarified that none of the observations made in either the interim order dated October 17, 2025, or the current order dated January 9, 2026, should be treated as opinions on the case merits. Both parties retain the liberty to raise all contentions available to them in facts and law during the appeal proceedings.

Expedited Appeal Timeline

The Supreme Court has specifically requested the Bombay High Court to ensure expeditious disposal of the pending appeal, preferably within three months from the date the order is placed before it. This timeline reflects the court's recognition of the commercial implications involved in the trademark licensing dispute. The company received the Supreme Court order on January 13, 2026, and has disclosed this development under Regulation 30 of SEBI LODR Regulations.

Trademark Licensing Dispute Background

The legal proceedings center around trademark licensing rights within the Kirloskar group companies. The original Bombay High Court order dated October 11, 2025, had modified an earlier ruling from July 25, 2025, expanding restrictions on trademark licensing arrangements. The Supreme Court's intervention provides clarity on the licensing versus assignment distinction, noting that licensing grants privilege while retaining rights with the licensor, whereas assignment may involve rights transfer.

Financial Impact Assessment

Kirloskar Brothers Limited has stated that the expected financial implications of the litigation cannot be ascertained at this juncture. The company has committed to keeping stock exchanges informed of any further developments in the matter. The absolute stay provides operational certainty while the appeal process continues, allowing the company to maintain its business operations without the constraints imposed by the modified High Court order.

Kirloskar Brothers Limited has informed stock exchanges about receiving a significant GST order demanding ₹5.29 crores in tax along with penalty and interest. The company disclosed this development under Regulation 30 of SEBI listing regulations on January 2, 2026.

GST Order Details

The order was issued on December 31, 2025, by the Additional Commissioner, Office of the Principal Commissioner of CGST and Central Excise, Chennai North Commissionerate. The company became aware of this order on January 2, 2026, after conducting a search on the GST website ( www.gst.gov.in ).

Alleged Violations

The GST demand stems from four specific allegations related to the Chennai Regional Office operations:

• Ineligible Input Tax Credit (ITC): Claims on cross-charge invoices issued by Head Office (Pune) for common services
• Non-reversal of ITC: Related to shortage of raw materials (castings) based on Form 3CD disclosures for FY 2018-19
• Short payment of GST: Due to non-inclusion of certain income heads in taxable turnover from 2018-19 to 2023-24
• Section 74 invocation: Alleging suppression under the CGST Act, leading to interest and penalty

Company Response

Kirloskar Brothers Limited has stated that it is currently seeking legal advice on the probable impact of this order. The company emphasized that it does not foresee any immediate or probable impact on its financial, operational, or other activities at this juncture.

The order provides the company with 90 days to either pay the alleged tax arrears, penalty, and interest, or file an appeal against the order. The company has committed to inform the stock exchanges of any developments regarding this matter as they unfold.