In a significant legal development involving Jubilant Agri and Consumer Products Limited, the company has disclosed an ongoing litigation with Shivashakthi Builders and Developers, a partnership firm, which could potentially have financial implications. The dispute pertains to a money decree originally awarded against Jubilant Agri, and the matter has now reached the Hon’ble High Court of Karnataka for resolution.

Background of the Dispute

The roots of this legal case trace back to Civil Suit O.S. No. 5561/2014, where Shivashakthi Builders & Developers had initiated proceedings against Jubilant Agri and Consumer Products Limited alleging breach of a contractual agreement. The Principal City Civil and Session Judge at Bengaluru had earlier ruled in favor of Shivashakthi Builders, awarding a monetary decree of ₹8 Crore, along with litigation costs and an 8% Rate of Interest (ROI), calculated from the date of initiation of the suit till its realization.

Disagreeing with the trial court’s judgment, Jubilant Agri filed an appeal (RFA:259/2025) before the High Court of Karnataka on January 27, 2025. The company argued that it had not committed any breach of contractual obligations and sought a stay on the operation of the lower court’s order.

High Court’s Interim Order

After a detailed hearing on the matter, on April 21, 2025, the High Court issued an interim order that partially favors Jubilant Agri. The court has granted a stay on the operation of the trial court’s money decree, conditional upon the Petitioner (Jubilant Agri) depositing ₹4 Crore, which is 50% of the principal claim, by June 9, 2025. The ruling gives temporary relief to the company as it continues to pursue legal avenues to reverse the lower court’s verdict.

The company received intimation of this order on April 22, 2025 at 00:47 AM (IST) from its legal counsel, and promptly submitted the required regulatory disclosure to the National Stock Exchange (NSE) and BSE Limited under Regulation 30 of SEBI (LODR) Regulations, 2015, read with SEBI Master Circular dated November 11, 2024.

Financial Implications

The financial exposure, as per the original decree, amounts to ₹8 Crore along with 8% interest per annum, which could have a material impact if the decree is upheld in the final judgment. However, the interim relief means that the company is not immediately required to pay the full amount, thereby easing short-term financial pressure.

The management of Jubilant Agri maintains that the company has strong legal grounds in the appeal and remains optimistic that the High Court will ultimately deliver a favorable verdict, validating the company's stand of no contractual breach.

Regulatory Compliance

The disclosure aligns with the company’s obligations under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, particularly regarding the pendency of litigation or disputes that may affect the listed entity. The company emphasized its commitment to transparency and regulatory compliance, stating that stakeholders would be updated on any further developments in the case.

The announcement was formally communicated to the NSE and BSE, where the company's stock is listed under the symbol "JUBLCPL" and scrip code "544355", respectively.

Conclusion

This litigation case, while pending final judgment, continues to draw attention due to its high monetary value and potential implications on the listed company’s financials. With the Karnataka High Court’s stay order, Jubilant Agri has temporarily shielded itself from the immediate enforcement of the decree, but the matter remains under judicial scrutiny. Investors and stakeholders are advised to monitor further announcements from the company, especially around the compliance with the ₹4 Crore deposit deadline of June 9, 2025, and the subsequent hearing schedules.

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