Ceigall India Limited, a reputed name in the infrastructure and engineering sector, has announced a significant legal victory after receiving an arbitration award of ₹6.61 crore in its favour. The award was issued by the Honourable Arbitral Tribunal under Section 31 of the Arbitration and Conciliation Act, 1996, in the matter between Ceigall India Limited and the Punjab Public Works Department (PWD), Ludhiana.

The arbitration relates to the project titled “Construction of Internal Roads, Estate Public Health Services & Campus Lighting Interim Airport Terminal at Halwara IAF Station (EPC Mode), District Ludhiana (Punjab)”. This project was part of Punjab’s infrastructure development initiative for the Halwara Indian Air Force Station.

The Arbitral Tribunal passed the order on October 9, 2025, declaring an award of ₹6.61 crore in favour of Ceigall India Limited. The company is also entitled to future interest at 12% per annum from the date of the award, in addition to the release of a bank guarantee worth ₹80 lakh.

The company made this disclosure pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which mandates listed entities to disclose any material events or information that could impact investors’ decisions or the company’s financial standing.

The official intimation was submitted to both BSE Limited and the National Stock Exchange of India Limited (NSE) on October 10, 2025. The filing was signed by Ms. Megha Kainth, Company Secretary and Compliance Officer, bearing Membership No. F7639.

Details of the Arbitration Award

According to Annexure A submitted with the filing, the following details were disclosed:

1. Authority: Arbitral Tribunal

2. Nature of Order: The Tribunal has awarded ₹6.61 crore in favour of the company, with future interest at 12% per annum effective from October 9, 2025, and directed the release of a bank guarantee worth ₹80 lakh.

3. Date of Order: October 9, 2025

4. Violation/Contravention: None

5. Impact on Company: The company stated that the award would have a positive impact on its financial position, strengthening its balance sheet and liquidity position.

This outcome represents a favourable resolution of a long-standing dispute between Ceigall India and Punjab PWD, related to project execution and associated claims.

Understanding the Legal Context

The Arbitration and Conciliation Act, 1996, governs arbitration proceedings in India and provides a mechanism for resolving commercial disputes outside traditional courts. Section 31 of the Act specifies the form and contents of an arbitral award, ensuring it is enforceable and binding on the parties involved.

In this case, the Tribunal, after reviewing all submissions, evidence, and contractual obligations, found merit in Ceigall India’s claims and ruled in its favour. The award not only includes the principal claim amount but also compensates for delayed payments through 12% annual interest, ensuring fair restitution.

Such arbitration victories not only provide financial relief but also enhance a company’s credibility in the infrastructure sector, where project-related disputes are common.

Project Background – Halwara IAF Terminal

The project under dispute involved the construction of internal roads, public health services, and campus lighting at the Interim Airport Terminal within the Halwara Air Force Station, located in Ludhiana, Punjab.

The project, undertaken in EPC (Engineering, Procurement, and Construction) mode, was designed to upgrade the infrastructure surrounding the airbase to support civil aviation operations and improve regional connectivity.

During execution, certain payment delays and work-related disagreements emerged between Ceigall India and the Punjab Public Works Department, leading to arbitration proceedings.

After several hearings and document evaluations, the Arbitral Tribunal ruled that the company’s claims were justified, awarding the sum of ₹6.61 crore along with accrued interest.

Financial Impact on Ceigall India

The company has officially stated that the arbitration award will have a positive impact on its financial position. The inflow of ₹6.61 crore plus interest will strengthen liquidity, enhance cash flow, and support the company’s operational requirements.

Additionally, the release of an ₹80 lakh bank guarantee will further improve the firm’s working capital position. This inflow will reduce liabilities and may positively influence upcoming financial statements and investor confidence.

Such developments are crucial for listed infrastructure companies that operate on capital-intensive models, as arbitration resolutions can unlock stalled funds and contribute to business growth.

Regulatory Compliance and Disclosure

By making this disclosure under Regulation 30 of the SEBI LODR Regulations, 2015, Ceigall India has fulfilled its obligation to provide timely and accurate information to investors and regulatory authorities.

Regulation 30 requires listed entities to inform the stock exchanges of any material events, including legal proceedings, arbitration outcomes, or financial developments, which may influence share prices or investor perception.

The company’s transparency in promptly reporting the arbitration result is a sign of strong governance practices and regulatory adherence.

About Ceigall India Limited

Ceigall India Limited (CEIGALL) is a leading infrastructure and construction company engaged in executing roads, highways, and large-scale civil projects across India. The company is known for delivering high-quality engineering solutions using advanced technologies and adhering to stringent safety standards.

Listed on both BSE (Scrip Code: 544223) and NSE (Symbol: CEIGALL), the company operates with CIN: INE0AG901020. Over the years, Ceigall India has built a strong reputation for executing public infrastructure projects, especially in roads and airport infrastructure development.

The company’s core expertise lies in EPC and HAM (Hybrid Annuity Model) contracts, working with several government departments and public sector agencies.

Broader Industry Implications

In the infrastructure sector, arbitration cases are frequent due to contractual complexities and delayed payments from public authorities. Successful outcomes, like this one for Ceigall India, not only ensure financial recovery but also strengthen trust in the arbitration process as an efficient dispute resolution mechanism.

The win also signals that infrastructure companies can rely on legal and regulatory frameworks to protect their commercial interests while maintaining project timelines and compliance.

This award could also boost investor confidence in Ceigall India, as it highlights the company’s proactive legal management and ability to recover dues effectively.

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