Shreeji Shipping's Rs 628.927 crore claim remains unaccepted

Shreeji Shipping Global Limited said a potential counterparty’s application to revise a claim to Rs 628.927 crore over five proposed vessel charter-cum-sale agreements had not been accepted by the Gujarat High Court as at September 30, 2026, leaving the dispute without a merits adjudication.

What is the Rs 628.927 crore claim against Shreeji Shipping?

The Rs 628.927 crore amount is a proposed revised damages claim, not a court-determined liability of Shreeji Shipping. The dispute arose in August 2025 while Shreeji Shipping was finalising long-term charter-cum-sale agreements for five vessels with a potential counterparty. That counterparty filed an admiralty suit before the Gujarat High Court alleging breach of contract and claiming damages, including alleged loss of profits.

The original claim filed in the suit was Rs 118.209 crore, before the plaintiff sought to revise it to Rs 628.927 crore. The proposed revision is therefore Rs 510.718 crore higher than the original filing. Shreeji Shipping said the Gujarat High Court had not accepted the application seeking revision as at September 30, 2026, and that both the claim and its quantum remain sub-judice.

The filing does not identify the potential counterparty, set out the proposed contractual terms, or state that any of the five charter-cum-sale transactions were completed. It describes Shreeji Shipping as having been in the process of finalising the agreements when differences emerged in August 2025. The company also said there had been no adjudication on the merits of the case as at the September 30, 2026 reporting date.

What has the Gujarat High Court ordered on the vessels?

The Gujarat High Court ordered the arrest of vessels on December 24, 2025 to secure the potential counterparty’s claim under the Admiralty Act. Shreeji Shipping furnished bank guarantees of Rs 47.155 crore to obtain the release of two of the five vessels. The announcement does not state the status of the other three vessels or say that the guarantees resolve the underlying contractual dispute.

Shreeji Shipping has applied to reduce the quantum of security required and to vacate the arrest order in respect of all five vessels. Hearings on both applications had concluded by September 30, 2026, and Shreeji Shipping said it was awaiting the Gujarat High Court’s orders. The next disclosed court development is therefore an order on security and the vessel arrests, rather than a scheduled ruling on the damages claim.

The Rs 47.155 crore bank guarantees are security provided in connection with the December 2025 arrest order, rather than a payment of damages. That amount is below both the Rs 118.209 crore original claim and the Rs 628.927 crore proposed revised claim. The source does not disclose the bank-guarantee terms, any cash collateral supporting them, or an outcome for Shreeji Shipping’s request to reduce the security.

How has Shreeji Shipping accounted for the lawsuit?

Shreeji Shipping has disclosed the five-vessel case as a contingent liability and made no provision in its standalone financial statements as at September 30, 2026. The company said its treatment was based on legal advice and management assessment that no provision was required at that stage. This is an accounting treatment rather than a court finding on the validity or eventual value of the claim.

The September 30, 2026 standalone balance sheet reported total assets of Rs 1,214.615 crore, compared with Rs 1,176.174 crore at March 31, 2026. It also reported current provisions of Rs 19.017 crore at September 30, 2026, but the company did not link that balance to the five-vessel suit. Because the litigation note specifically says no provision was made, the reported provisions cannot be treated as a reserve for the proposed Rs 628.927 crore claim.

Shreeji Shipping also disclosed a separate trade receivable of Rs 9.601 crore as at September 30, 2026 under a settlement agreement relating to charter-hire services. Recovery of that amount is subject to ongoing legal proceedings, and interest, if any, will be recognised only when recovered. This receivable is distinct from the admiralty suit because it concerns money claimed by Shreeji Shipping rather than damages sought from it by the potential vessel-contract counterparty.

What other disclosed contingencies and vessel funding are relevant?

A corporate guarantee of Rs 263 crore provided for Shreeji Coke and Energy Private Limited ceased to exist during the quarter ended September 30, 2026. Shreeji Shipping said the guarantee was consequently no longer outstanding at that date. The cessation is separate from the five-vessel litigation and does not alter the company’s disclosure that the admiralty suit remains a contingent liability.

Shreeji Shipping had Rs 251.18 crore of unutilised initial public offering proceeds at September 30, 2026, allocated to the acquisition of Supramax dry bulk carriers in the secondary market. The company had raised net IPO proceeds of Rs 369.88 crore, of which Rs 118.70 crore had been utilised by that date: Rs 23 crore for loan repayment or prepayment and Rs 95.70 crore for general corporate purposes.

The company said the unutilised Rs 251.18 crore was temporarily invested in deposits as at September 30, 2026. Its property, plant and equipment stood at Rs 492.884 crore, up from Rs 383.32 crore at March 31, 2026, with Rs 475.331 crore located within India and Rs 17.553 crore outside India. These asset figures provide financial context but do not quantify the legal outcome of the five-vessel case.

Conclusion

The disclosure identifies a pending dispute over five proposed charter-cum-sale agreements, with an original Rs 118.209 crore claim and an unaccepted request to raise it to Rs 628.927 crore. Shreeji Shipping has not booked a provision, while Rs 47.155 crore of bank guarantees secured the release of two vessels after the Gujarat High Court’s December 24, 2025 arrest order.

The key next event is the Gujarat High Court’s order on Shreeji Shipping’s applications to reduce security and vacate the arrest order for all five vessels, following hearings that had concluded by September 30, 2026. Separately, Shreeji Shipping’s stated plan was to use Rs 251.18 crore of unutilised IPO proceeds to acquire Supramax dry bulk carriers in the secondary market.