NACL Industries Limited — Important, 24-02-2025: General Updates

The Hon'ble High Court of Delhi has ruled in favor of NACL Industries Limited regarding its insurance claim from a fire incident at the Srikakulam plant in 2012. The court dismissed the appeal from The Oriental Insurance Company against an Arbitration Award that favored the company. This ruling confirms the awarded amounts, which include a Material Damage (MD) claim of ₹16.49 crores and a Loss of Profit (LOP) claim of ₹12.77 crores, plus interest. Previously, the company had secured favorable arbitration results and sought deposit of these amounts through execution petitions filed with the High Court. The awarded amounts, along with interest, were released to the company during the financial year 2021-22 following the court's orders and the provision of bank guarantees. This outcome enhances the company's financial position and could provide positive momentum moving forward.