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The Court of Madhya Pradesh has issued a decree in favor of DAAWAT Foods, a material subsidiary of LT Foods, in connection to a commercial suit stemming from a fire incident at its plant location in Mandideep, Madhya Pradesh on 7 June 2014.
LT Foods had sought Rs 189.72 crore as compensation for the total loss from the insurance company, Oriental Insurance Company. However, the claim was repudiated following a report submitted by the last surveyor appointed by the insurance company. Undeterred, LT Foods filed a commercial suit against Oriental Insurance Company on 26 June 2016.
After an extended legal process, the Court of Madhya Pradesh ruled in favor of the company on 22 December 2023. The court allowed the claim amounting to Rs 161.20 crore as per the terms and conditions of the insurance policy, in addition to mandating 6% interest per annum from the date of the loss.
The company is still awaiting the certified copy of the order from the court.
LT Foods is a leading player globally in the specialty rice and rice-based foods business. The company sells its products in more than 65 countries across India, the U.S., Europe, the Middle East, the Far East and the rest of the world.
On a consolidated basis, Net profit of LT Foods rose 74.27% to Rs 155.97 crore while net sales rose 14.67% to Rs 1977.79 crore in Q2 September 2023 over Q2 September 2022.
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