BBTC files application with Supreme Court over lease rent dispute
BBTC filed an application with the Supreme Court on July 21, 2026, to expunge observations regarding lease rent from a May 29, 2026 order. The company disputes a reported lease rent of ₹4,655 crore, stating no demand was received. The matter is governed by a Madras High Court order from October 15, 2025.
The ongoing litigation and dispute over a significant lease rent amount could have financial implications for the company. While the company is contesting the claim, the pendency of this issue creates uncertainty.
The company is taking legal action to clarify lease rent obligations, which is a procedural step. While there's a dispute over lease rent, the core operations and land handover are progressing, and the Supreme Court has directed the State to follow previous High Court orders for re-quantification.
The Bombay Burmah Trading Corporation Limited (BBTC) has filed an Interlocutory Application before the Hon'ble Supreme Court seeking to recall and expunge observations regarding lease rent made in a previous Supreme Court order dated May 29, 2026. This action follows the Supreme Court's order in Civil Appeal Nos. 6395–6397 of 2025 (A. John Kennedy and Others vs. State of Tamil Nadu and Others), which reviewed the status of BBTC's tea estate in Singampatti, Tamil Nadu.
The company had ceased plantation and factory operations effective June 16, 2024, and subsequently offered a Voluntary Retirement Scheme (VRS) to 534 workers, with dues paid or deposited for disbursement. The cessation of operations was challenged by workmen, but the Madurai Bench of the Madras High Court declined relief in a judgment dated December 3, 2024. However, a Civil Appeal was filed against this judgment.
During the pendency of the appeals, BBTC handed over 8,152.13 acres of land on May 8, 2025, retaining the balance 221.44 acres temporarily to remove movables. On July 11, 2026, BBTC completed the dismantling of factory structures and demolition of buildings on the retained land and handed over possession to the Forest Department.
The Supreme Court order of May 29, 2026, noted progress in handing over land and settling VRS amounts. However, it also recorded, based on a Central Empowered Committee (CEC) report, that certain lease rentals remain to be recovered by the State Government. BBTC states that the CEC report is based on internal correspondence and calculations from a department it believes has no jurisdiction, and it has not received any communication or demand regarding this calculation. The issue of lease rent is governed by the Madras High Court's order, which had previously quashed demands of ₹231.9 crore. The Supreme Court directed the State to follow the Madras High Court's orders for re-quantification after issuing notice and hearing parties by October 15, 2025.
BBTC emphasizes that the Civil Appeals do not pertain to the lease rent issue, and no notice, demand, or computation has been issued to the Corporation, nor has it been given an opportunity to object. The company will continue to inform the stock exchanges of material developments.
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The Bombay Burmah Trading Corporation Limited filed this with the NSE as a statutory disclosure, categorised under litigation updates. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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See the model portfoliosA plain-language summary of a public exchange filing by The Bombay Burmah Trading Corporation Limited. Read the original for the full detail.