Vishal Mega Mart Limited announced that its subsidiary, Airplaza Retail Holdings Private Limited, has received a court order regarding a legal dispute with its landlord, Flowers Valley Floriculture Private Limited. The Commercial Court at Rajarhat has directed the subsidiary to pay ₹2,68,31,676 towards contractual rent and GST and to vacate the leased premises within two months. The company is reviewing the order and plans to file an appeal.
Subsidiary Faces Significant Court Order
Vishal Mega Mart Limited has disclosed a material development concerning its subsidiary, Airplaza Retail Holdings Private Limited. The company received an order from the Commercial Court at Rajarhat, North 24 Parganas, West Bengal, related to a legal dispute with its landlord, Flowers Valley Floriculture Private Limited.
Order Details and Financial Impact
The court order mandates the subsidiary to pay an amount of ₹2,68,31,676, covering contractual rent and applicable GST for the period from April 2020 to December 18, 2020. Additionally, the subsidiary is required to vacate the leased premises, including parking spaces, within two months. The matter also includes a claim for mesne profits at the rate of ₹2,00,000 per day from December 19, 2020, until peaceful possession of the premises is recovered. The financial impact of this order is quantified to the extent of the decreed amount.
Company’s Next Steps
Vishal Mega Mart Limited has stated that the subsidiary is currently reviewing the order. The company intends to file an appeal to challenge the court’s decision. Further details on the violation(s) or contravention(s) are not specified beyond the nature of the legal dispute concerning eviction and rent recovery.
Source: BSE
