Bliss GVS Pharma Limited has formally communicated to the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) about its initiation of arbitration proceedings against Pan Pharmaceuticals Limited (based in Nairobi, Kenya) to recover outstanding dues amounting to USD 1.69 million. The company filed a petition for the appointment of an arbitrator before the Supreme Court of India, as per the provisions under the Arbitration and Conciliation Act, 1996.

The litigation is a key step for Bliss GVS Pharma to recover the dues from Pan Pharmaceuticals, with whom it is involved in a dispute over outstanding payments. According to the filing, the company has taken necessary legal steps to resolve the matter and ensure the recovery of the owed amount.

In line with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and as required by the SEBI Circular dated July 13, 2023, the company has provided specific details regarding the litigation and its potential impact. The key points outlined are as follows:

1. Opposing Party and Legal Forum:

   • The opposing party is Pan Pharmaceuticals Limited, based in Nairobi, Kenya.

   • The matter has been filed before the Supreme Court of India, which is expected to appoint an arbitrator to oversee the arbitration proceedings under the Arbitration and Conciliation Act, 1996.

2. Details of the Dispute:

   • The core issue relates to the recovery of outstanding dues from Pan Pharmaceuticals.

   • The total amount involved in the dispute is estimated at USD 1.69 million. This sum represents the recovery that Bliss GVS Pharma expects to obtain as part of the arbitration process.

3. Expected Financial Implications:

   • The company has already made appropriate provisions in its books of accounts for the amount recoverable from Pan Pharmaceuticals. This provision ensures that there will be minimal or no adverse financial impact on Bliss GVS Pharma, regardless of the arbitration outcome.

   • Bliss GVS Pharma has emphasized that any compensation or penalty resulting from the arbitration will be subject to the final decision of the arbitrator. The company has effectively mitigated the risk by factoring the anticipated recovery into its financial records.

4. Quantum of Claims:

   • The quantum of the claim that will ultimately be recovered will depend on the outcome of the arbitration proceedings. However, the company is optimistic that the arbitration will lead to a successful recovery of the outstanding dues.

This action is a significant development for Bliss GVS Pharma, as it demonstrates the company’s commitment to pursuing all avenues to ensure financial stability and efficient recovery of dues from its partners. The arbitration process is expected to provide clarity on the resolution of this long-standing issue, potentially resulting in a favorable outcome for the company.

Impact on Bliss GVS Pharma's Shareholders
For shareholders, the arbitration proceedings might cause short-term market fluctuations, but the company's proactive approach in managing financial provisions reduces the likelihood of major financial distress. The outcome of the arbitration, though not immediately quantifiable, could also signal the company’s continued legal preparedness and corporate governance standards in dealing with international business disputes.

As Bliss GVS Pharma moves forward with this legal action, the company continues to focus on enhancing its operational performance, safeguarding its financial position, and addressing any disputes in a manner that ensures long-term growth and stakeholder value.

Would you like to delve deeper into the company's financials or explore the broader implications of international arbitration on its operations?

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