New Delhi, March 26 Leading cement maker UltraTech Cement announced on Thursday that it has reached an agreement with Jaiprakash Associates Ltd (JAL) in the ongoing arbitration over the Dalla Super unit and associated mines.
In a regulatory filing, UltraTech Cement said it will redeem 100,000 Series A Preference Shares, each with a face value of Rs 100,000, totaling Rs 100 crore.
This settlement will also help in monetizing JAL's assets in its ongoing Corporate Insolvency Resolution Process (CIRP), in which rival Adani Group has emerged as the successful resolution applicant (bidder).
This brings to an end a long-standing dispute between UltraTech and debt-ridden JAL, which is currently undergoing insolvency resolution.
"Following the Parties reaching an agreement regarding the arbitration and the Arbitral Tribunal passing a final award on March 26, 2026, all rights and interests in the Dalla Super unit and mines have fully vested in the company, and all claims/proceeds and liabilities related to the Series A RPS have been fully discharged," the UltraTech filing noted.
The Dalla Super unit and associated mines were acquired by UltraTech in 2017, pursuant to a scheme of arrangement sanctioned by the National Company Law Tribunal (NCLT) bench in Mumbai on February 15, 2017, and the NCLT bench in Allahabad on March 2, 2017.
The scheme was made effective from June 29, 2017, by resolutions passed at the meeting of the Board of Directors of UltraTech and JAL, held on June 29, 2017, respectively.
UltraTech had issued "escrow" of 100,000 Series A Redeemable Preference Shares, each with a face value of Rs 100,000, in June 2017, which were to be released upon satisfaction of conditions relating to the Dalla Super unit and mines located in Uttar Pradesh.
However, due to certain disputes between the Parties, the matter was referred to arbitration.
JAL had acquired the Dalla assets along with its captive mines in 2007, through the sale of assets of Uttar Pradesh State Cement Corporation Limited (UPSCCL), which was being liquidated by the High Court of Allahabad.
JAL, with a bid of Rs 459 crore, was declared the highest bidder for bids invited for the sale of assets of the cement plants of UPSCCL located at Dalla, Churk & Gurma in Sonebhadra district and Chunar in Mirzapur district, through a global tender.
It has six mines, namely Kajrahat, Ningha, Gurma, Julgul, Bhalua, and Bari. JAL had increased the clinker capacity of the acquired plant from 0.50 to 2.0 MTPA by installing a new clinkering unit.