SEPC Ltd, an EPC company, has secured full and final closure of execution proceedings filed against it and other co-parties by the award holders, following an order of the Madras High Court.
The Court terminated all related execution petitions and closed connected pending applications after the parties entered into a Joint Memo of Compromise. The order brings long-standing disputes and related execution liabilities under the petitions to an end.
Receivables attachment lifted
The order has removed the attachment on SEPC’s receivables worth ₹154 crore with immediate effect. All restrictions imposed on the company’s banking operations have also been completely lifted.
The settlement involves no direct monetary outflow for SEPC, as the entire settlement amount has been paid by another party to the proceedings under an indemnity agreement executed in 2015.
Settlement amount fixed at ₹149 crore
Under the compromise, the parties agreed to a total settlement of ₹149.5 crore. This comprises a demand draft of ₹147 crore submitted before the Court and ₹2.5 crore already lying to the credit of the Court, which will be paid to the award holders.
SEPC said the settlement amount has been funded entirely by another party under the 2015 indemnity agreement, leaving the company with no direct cash outflow.
Banking operations restored
All interim attachments made under the execution petitions have been raised, releasing SEPC’s ₹154 crore of receivables with immediate effect.
The lifting of the restrictions also restores the company’s banking operations, providing greater financial flexibility for its business activities and project execution.
All proceedings brought to close
The Madras High Court has terminated all listed and un-numbered execution petitions and closed all connected pending applications.
The company said the order marks a significant positive development and fully concludes the long-standing disputes and execution liabilities covered by the proceedings.
Company to focus on execution
“We welcome the order of the Madras High Court, which brings these long-standing proceedings to a full and final closure. The matter has been settled with no direct cash outflow for SEPC, and the release of ₹154 crore of receivables, along with the lifting of all banking restrictions, gives the Company greater financial flexibility with immediate effect,” SEPC, Managing Director, Venkataramani Jaiganesh, said.
“With this matter now behind us, our focus remains firmly on project execution and on delivering sustainable growth for all our stakeholders,” he said.