Bannari Amman Spinning Mills Limited, a prominent textile manufacturer based in Tamil Nadu, has recently encountered a significant challenge concerning its land mortgage registration. The company, which operates a weaving unit on land in Dharapuram, Tirupur District, has been faced with a refusal of mortgage registration for certain lands it owns. This development came to light following the receipt of orders 621/2024 and 622/2024, dated December 10, 2024, issued by the Sub-Registrar of Dharapuram.

The refusal of registration has been confined to specific survey numbers: 371/3 and 371/4, where the company's weaving unit operates. Despite the company having valid sale deeds, a mortgage agreement created in favor of its lenders, and a clear title opinion from reputed law firms, the refusal cites certain entries in the departmental records as the reason for this setback. The company has been in uninterrupted possession of these lands since 2006, and it is currently exploring all avenues to resolve the issue.

Company’s Steps Towards Resolution

Bannari Amman Spinning Mills has expressed its intention to take appropriate steps to address the registration refusal. The company is actively considering filing an appeal to higher authorities and even contemplating a writ petition in a bid to safeguard its interests and secure the necessary mortgage registration for the lands in question. It is important to note that the company’s legal standing is strong, with the sale deed and mortgage agreements in place, alongside the company having maintained peaceful possession of the properties for several years.

Impact on the Company’s Operations

The refusal of mortgage registration does not seem to have any immediate impact on the company's operations, particularly the weaving unit, as it continues to function seamlessly. However, the company’s stock market performance could potentially be affected if this issue is not resolved promptly. Investors are closely monitoring the situation, with some analysts speculating that this could affect investor sentiment if the matter escalates.

Legal and Regulatory Compliance

Under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company has made a timely disclosure to the stock exchanges about the issue, ensuring compliance with regulatory requirements. The matter is still in its early stages, and it remains to be seen how the company's legal team will navigate the hurdles presented by the mortgage registration dispute. As of now, the company has made clear its intention to pursue all legal channels available to resolve the dispute.

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