Nashik: Agricultural solutions provider UPL Limited has achieved a major legal victory in its prolonged battle against Bhagyalaxmi Agro Services of Nashik.
The judgment underscores the company’s zero-tolerance stance toward payment defaults and delaying tactics, sending a strong signal across the agribusiness sector.
Five-Year Dispute
The legal dispute began when Bhagyalaxmi Agro Services defaulted on dues following a dishonoured cheque worth ₹58.23 lakh, including a principal amount of ₹50.81 lakh plus interest. Despite repeated reminders, the defaulter did not repay, prompting UPL to initiate legal proceedings.
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After nearly five years of hearings in both lower and appellate courts, the Patiala House Court upheld UPL’s claim, ordering repayment of ₹70 lakh. This amount covered the dishonoured cheque, accrued interest, legal costs, and penalties for harassment caused by deliberate delays.
The appellate court adopted an even stricter stance against Bhagyalaxmi Agro Services, refusing to accommodate repeated adjournments.
Represented by senior advocate Ved Vyas Tripathi, UPL pressed its claim firmly. Facing possible imprisonment and harsher financial penalties, Bhagyalaxmi Agro Services agreed to settle by paying ₹61.5 lakh, along with an additional ₹3.5 lakh penalty for wasting judicial time. The settlement is due by August 30, 2025.
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UPL Legal Victory: Payment Defaulters Warned
Following the ruling, UPL’s Legal Team stated, “This judgment is a clear warning to anyone attempting to avoid financial obligations. Defaults and delaying tactics will invite steep financial penalties and legal action, including jail time where necessary.”
The company emphasized that enforcing financial discipline helps strengthen trust, ensure fair practices, and build sustainable partnerships in the agricultural ecosystem. By safeguarding payment integrity, UPL aims to create an environment where genuine business relationships and farmers can thrive.
