SEPC: Madras HC settlement unlocks receivables in 2026

SEPC Limited has informed stock exchanges that the Hon'ble High Court of Madras passed a common order dated September 30, 2026, settling multiple execution petitions involving the company. The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The company said the settlement consideration is ₹149.5 crore and that the court order results in termination of the listed and un-numbered execution petitions covered by the common order. SEPC also said all interim measures imposed during the litigation cease to apply, a change that directly impacts day-to-day operations.

What the Madras High Court order covers

SEPC stated that the common order applies to a set of execution proceedings, including Execution Petition Nos. 91 and 92 of 2023, 7 of 2024, 15 and 16 of 2025, and the unnumbered E.P.(SR).No.126896 of 2026. The filing also referred to connected applications (A.Nos.2667 and 4112 of 2026) being closed.

According to SEPC, the court order terminates all the listed and un-numbered execution petitions covered under the common order. The company described this as a settlement of disputes that ends the execution proceedings and closes connected pending applications.

Settlement amount and how it is being paid

SEPC disclosed the total settlement consideration as ₹149.5 crore. In market commentary reproduced in the source material, the settlement amount was described as being discharged under an indemnity arrangement, resulting in zero direct cash outflow for SEPC.

A social media post cited in the provided text also described the settlement being funded through a Demand Draft of ₹147 crore and a balance ₹2.5 crore lying in court. The same reference indicated the payment was made by a co-respondent (JD-1) under an indemnity agreement dating back to 2015, shielding SEPC from a direct payment obligation.

SEPC’s exchange update emphasised that the net financial impact on the company is nil as the liability has been settled under an inter-se arrangement.

Immediate lifting of attachments on receivables

A central operational change flagged by SEPC is the lifting of interim attachments that had been placed on receivables. SEPC said the attachments covered receivables valued at ₹154 crore and that they have been lifted with immediate effect.

The company described these receivables as previously frozen due to a court-ordered interim attachment. With the common order in place, SEPC indicated the receivables now stand unlocked, which can remove a working-capital bottleneck created during the dispute period.

The text also cites court records stating that an interim attachment was ordered on February 19, 2026, attaching ₹154.63 crore of SEPC’s trade receivables out of total trade receivables of ₹499.62 crore.

Banking restrictions and TRA freeze removed

SEPC stated that restrictions on banking operations imposed during the litigation have been completely removed with immediate effect. The provided material also notes that the freeze on the Trust and Retention Account (TRA), initiated by lenders after the February 2026 attachment order, has been entirely removed.

From an operational standpoint, the removal of banking restrictions is material because the earlier litigation-linked measures had constrained collections and account operations. SEPC’s disclosure frames the change as a return to normal financial flexibility following closure of the execution proceedings.

Why the execution petitions mattered operationally

Execution petitions typically relate to enforcement of awards or decrees, and interim attachments can restrict a company’s ability to collect receivables even when underlying projects or contracts continue to run. In SEPC’s case, the key immediate constraint highlighted in the disclosure was the attachment of receivables.

By stating that interim measures cease to apply and attachments are raised, the company is signalling that court-backed restrictions tied to the execution petitions are no longer in force. The company also indicated that all connected pending applications have been closed, which reduces ongoing legal process load linked to these specific matters.

Market snapshot: SEPC share price reaction

As per the market data included in the provided text, SEPC shares were trading at ₹5.13 at 9:37 AM on October 1, 2026, up 2.19% from the previous close of ₹5.02. This reflects an immediate market response to the disclosure of settlement and removal of operational restrictions.

Key facts at a glance

Timeline of the dispute and resolution

What changes for SEPC after the order

Based on SEPC’s disclosure, the immediate operational effect is the release of receivables that were earlier under attachment, and the removal of restrictions on banking operations. If collections tied to those receivables resume normally, it can improve the company’s working-capital movement compared to the litigation period when receivables were frozen.

Separately, the company’s statement that the settlement results in termination of all listed and un-numbered execution petitions covered by the order is relevant for legal certainty. It indicates closure of the specific enforcement proceedings referenced in the disclosure, along with connected applications.

Conclusion

SEPC’s exchange update points to a clear legal and operational reset: a ₹149.5 crore settlement approved by the Madras High Court on September 30, 2026, termination of the covered execution petitions, and immediate lifting of interim attachments and banking restrictions. The company has also indicated that the net financial impact on SEPC is nil as the liability was discharged under an indemnity arrangement. The next observable milestones, based on the disclosure, will be the practical normalisation of receivable collections and banking operations now that the interim measures have ceased to apply.