Arbitration proceedings have been filed against KRBL in Delhi high court on 7.10.23 by AQM ( Al Qurashi Marketing company ltd ) . AQM was appointed distributor for Saudi Arabia since 2022, this company also claims 33.5 million dollars from KRBL.
KRBL will be fightimg this petition and also believes that the claim is bogus as AQM have not performed their obligations under the RDA ( Retial Distributorship Agreement)
The honorable high court has not given any relief to AQM as hearing was postponed to undisclosed date.
The share price of krbl was down substantially in today’s trading session
The management had mentioned in their last concall about the termination of the RDA with AQM as they were asking for large credit which was against company policy.
1)If this is the only matter for contention than AQM is fighting a losing battle as the terms must be mentioned in the RDA.
2) If there is more to this that management is not disclosing than the legal battle will take a toll on KRBL
Hopefully KRBL comes out of this as a winner and the investors specially small investors have something to cheer about
Disc : Not sebi registered, have a small position in KRBL
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