Sterling and Wilson Renewable Energy Limited has initiated material litigation concerning a dispute with a sub-contractor who has gone into liquidation. The company invoked insurance bonds amounting to approximately INR 25.50 Crore, issued by Credit Guarantee Insurance Corporation of Africa Limited and Old Mutual Alternative Risk Transfer Insure Limited. The dispute arose when these entities failed to make payments, leading Sterling and Wilson to file a Notice of Motion in the High Court of South Africa.
Material Litigation Initiated Over Sub-Contractor Dispute
Sterling and Wilson Renewable Energy Limited has formally initiated material litigation as per SEBI Listing Regulations. The dispute stems from the liquidation of Lead Engineering and Projects (Pty) Ltd, a sub-contractor involved in the Doornhoek and Zondereinde Project in South Africa. Consequently, Sterling and Wilson Renewable Energy invoked insurance bonds totaling approximately INR 25.50 Crore.
Insurance Bond Invocation and Legal Action
The insurance bonds, which included advance, performance, and retention bonds, were issued by Credit Guarantee Insurance Corporation of Africa Limited and Old Mutual Alternative Risk Transfer Insure Limited on behalf of the liquidated sub-contractor. When these respondents failed to honor the payment obligations following the invocation, Sterling and Wilson Renewable Energy filed a Notice of Motion before the High Court of South Africa, Gauteng Local Division, Johannesburg. The Notice of Motion was filed on August 25, 2026, and the company was formally notified of its cognizance on October 16, 2026.
Financial Implications
The expected financial implications due to compensation or penalties in this matter are currently Nil. However, the quantum of claims is approximately INR 25.50 Crore.
Source: BSE
