Ashima514286Legal settlement news
Consent terms executed with HDFC Bank and BBK to settle long-pending legal cases
Ashima Ltd has executed Consent Terms with HDFC Bank and Bank of Bahrain and Kuwait BSC (BBK) on 22nd October, 2026 to settle cases pending before DRAT, DRT and the Commercial Court at Ahmedabad.
By ScoutQuest · · 3 min read
- Payment to BBK
- Rs. 18.00 Crores
- Net outgo
- approximately Rs. 13.94 Crores
- Impact on profitability
- approximately Rs. 9.83 Crores
What has been signed
- Ashima Ltd has executed Consent Terms with HDFC Bank Limited and Bank of Bahrain and Kuwait BSC (BBK) on 22nd October, 2026 for a negotiated settlement of various legal cases involving the Company, HDFC Bank and BBK.
- The cases are pending before the Debt Recovery Appellate Tribunal - Mumbai (DRAT), Debt Recovery Tribunal - Mumbai (DRT) and the Commercial Court at the City Civil Court, Ahmedabad.
- The parties will file the Consent Terms with DRAT at the next hearing of the matter, for withdrawing the cases.
- The Company will withdraw the civil suit pending before the Commercial Court after DRAT passes an order allowing withdrawal of cases. HDFC Bank will release its amount once the withdrawal order is passed by the Commercial Court.
Background of the dispute
- The cases relate to a cheque of Rs. 7.50 Crores drawn on HDFC Bank by the Company in favour of BBK.
- The cheque was not to be credited by HDFC Bank to BBK, but was erroneously credited by it to BBK, which was disputed by the Company.
- The settlement pertains to the matter of the year 2003.
Money involved
- The Company will pay Rs. 18.00 Crores to BBK for settlement of the matter.
- As part of the settlement, the Company would receive approximately Rs. 4.06 Crores from HDFC Bank, being amount belonging to the Company and held as Fixed Deposit by HDFC Bank pursuant to the court order in the case pending before the Commercial Court.
- The net outgo on account of the settlement would be approximately Rs. 13.94 Crores.
Accounting impact stated in the update
- The Company has been carrying the disputed liability of Rs. 7.50 Crores in its books under Suspense Account since 2003, against which it will pay Rs. 18.00 Crores.
- The difference of Rs. 10.50 Crores will be accounted for as interest expense in the financials of the Company.
- The Fixed Deposits with HDFC Bank are carried at Rs. 3.39 Crores as on date in the books, based on available information from the bank. The actual amount to be received now would be approximately Rs. 4.06 Crores.
- The difference of Rs. 0.67 Crores will be accounted for as interest income.
- In overall terms, the impact of the settlement on the profitability of the Company would be approximately Rs. 9.83 Crores.
How to read this
- On the one hand, the update states the settlement will put an end to prolonged litigation involving the Company, spanning over several years, in various judicial forums.
- On the other, the numbers show the cost of closing the matter: a payment of Rs. 18.00 Crores against a disputed liability of Rs. 7.50 Crores carried in the books, and an overall profitability impact of approximately Rs. 9.83 Crores.
- The payments and the release of funds are linked to orders from DRAT and the Commercial Court, so they take effect as the withdrawal process moves ahead.
More numbers
- Cheque amount in disputeRs. 7.50 Crores
- Amount payable to BBK for settlementRs. 18.00 Crores
- Amount receivable from HDFC BankRs. 4.06 Crores
- Net outgo on settlementRs. 13.94 Crores
- Difference to be booked as interest expenseRs. 10.50 Crores
- Fixed Deposits carried in booksRs. 3.39 Crores
- Difference to be booked as interest incomeRs. 0.67 Crores
- Overall impact on profitabilityRs. 9.83 Crores
Source: BSE · 23 Oct 2026
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