With regard to a LT sale and purchase agreement entered into in 2001
Birla Ericsson Optical has executed a Settlement Agreement in the late hours of 21 October 2015 with an overseas supplier in respect of a long standing business discord, which shall put an end to all legal proceedings launched in different jurisdictions. The business discord pertains to a Long Term Sale and Purchase Agreement (Agreement) entered into between the Company and an overseas supplier, which was executed on 23rd/24th January, 2001.The Company and the overseas supplier after due consideration and deliberation have amicably settled all the outstanding business discord and disputes. After execution of the Settlement Agreement both the Parties shall withdraw all pending law suits and the pending arbitration in due course. As per the terms of the Settlement Agreement, the Company shall, subject to approval of the Reserve Bank of India, pay to the overseas supplier certain amount in consideration of the settlement of the outstanding business discord and dispute which has been determined to a one time lumpsum Settlement Amount of US$ 714,000 (United States Dollar Seven Hundred and Fourteen Thousand only) besides purchase of certain quantity of product at a price agreed between the Parties, subject to the terms and conditions mentioned in the Settlement Agreement.
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