HCL Infotech Faces Setback as Muzaffarpur Court Allows UBGB’s Objection to Rs 13.41 Crore Arbitral Award:

HCL Infosystems Limited had previously informed the stock exchanges (National Stock Exchange of India Limited and Bombay Stock Exchange Limited) about the filing of an Objection Petition by the Uttar Bihar Gramin Bank (UBGB) against its wholly owned subsidiary, HCL Infotech Limited, under Section 34.

The objection petition bearing Miscellaneous (Arbitration) Case No. 249 of 2019 was filed challenging an Arbitral Award dated October 29, 2019, which had allowed certain claims of the company (to the tune of approximately Rs 13.41 Crore under various heads, together with pendente lite and future interest @ 18% per annum, and a further sum of Rs 20 lakh towards costs) and cross-claims of UBGB were rejected.

The concerned case is titled "Uttar Bihar Gramin Bank v. HCL Infotech Limited". In the context of the same petition, now the company, vide an Intimation dated October 06, 2026, has informed that the Principal District Judge, Muzaffarpur, Bihar, has passed a judgement dated September 16, 2026. The company had received the same judgement on October 06, 2026. In the judgement, the Ld. Principal District Judge has allowed the Objection Petition filed by the UBGB, holding that the Arbitral Tribunal was not able to make a categorical finding concluding that the Services Agreement dated December 11, 2012, terminated by the UBGB was unfair or invalid.

It was further ruled by the judge that while awarding interest at 18% per annum, the tribunal had relied on the provisions of Section 31(7) of the Arbitration and Conciliation Act, 1996. However, the same provision was neither examined nor were reasons specified for treating 18% per annum as a reasonable rate.

It was further disclosed by the company that "the Ld. Judge further held that the claims of HCL which are independent of the legality of termination and legally and factually severable shall remain unaffected."

Currently, the company is analysing and evaluating the delivered judgement, and looking for possible legal remedies available in its case. The company will take any further action as will be advised by the legal expert in accordance with the law, before the competent court/ High Court at Patna. The company says that the judgement appears to be vague or unclear.

HCL Infosystems Limited has made the aforementioned disclosure in pursuance of Regulation 30 read with Para B of Part A of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Refer to the official intimation for complete information.