KRBL Limited announced that the Arbitral Tribunal has delivered its award regarding the proceedings initiated by Reliable Trading Company (RTC) following the termination of distributorship agreements. The Final Award ruled in favour of RTC, ordering KRBL to pay a total of SAR 30,990,241.25 and USD 21,51,399.15, plus interest. KRBL is now seeking legal advice to challenge this award under Section 34 of the Arbitration and Conciliation Act, 1996, within the prescribed statutory timeline.
Arbitration Proceedings Update
KRBL Limited has informed exchanges about the conclusion of the arbitration proceedings initiated by Reliable Trading Company (RTC), formerly known as Al Quraishi Marketing Co. Limited. The dispute arose from KRBL’s action of terminating Distributorship Agreements dated 14 January 2022 and 21 May 2022, for which RTC sought damages.
The arbitration, conducted under the Delhi International Arbitration Centre Rules, 2023, concluded with the Arbitral Tribunal delivering its Award on 26 February 2026. The Tribunal ruled in favour of the Claimant (RTC). However, the award specifically found that neither RTC nor KRBL committed fraud or wilful misconduct during the dispute.
Financial Implications of the Award
The financial implications stemming from the 26 February 2026 Award require KRBL (the Respondent) to pay the Claimant (RTC) specific monetary amounts. These amounts are:
- SAR 30,990,241.25
- USD 21,51,399.15
Both sums are payable along with applicable interest. The quantum of the claim stated by RTC is reflected in these awarded figures.
Next Steps for KRBL
In response to the adverse award, KRBL is taking immediate action to protect its interests. The Company is currently in the process of obtaining necessary legal advice to challenge the Award. This challenge will be pursued under Section 34 of the Arbitration and Conciliation Act, 1996, and KRBL intends to institute proceedings within the mandated statutory limitation period.
Source: BSE
