Shares in Mercantile Ports & Logistics (LON: MPL) jumped 26% after the company said newly disclosed court filings appear to strengthen its legal challenge over the disputed ownership of debt linked to its Karanja Terminal & Logistics project in India.
The case centres on the cancellation of Mercantile’s previously approved One Time Settlement, under which the company had been declared the successful bidder and had already deposited around ₹43 crore (approximately £3.8 million).
According to documents filed by the lenders and Prudent ARC, a competing binding offer worth ₹520 crore (around £46 million) was submitted and considered while Mercantile’s settlement remained valid and before it was formally annulled.
Mercantile argues the disclosures fundamentally change the understanding of events, suggesting that an alternative transaction may have been pursued before the company had exhausted its contractual rights to complete the settlement. The company noted that its payment period extended until 30 September 2025.
Management believes the newly disclosed evidence raises serious questions over the fairness and transparency of the process and says legal advisers have indicated the information could have materially influenced earlier court proceedings, including those before the Delhi High Court.
The dispute will now return to the National Company Law Tribunal in Mumbai, where Mercantile’s challenge to the cancellation of its settlement agreement is scheduled to be heard on 1 July 2026.
Managing Director Pavan Bakhshi said the latest admissions raise significant concerns about whether the company was ever given a genuine opportunity to complete the agreed settlement, noting that the debt was ultimately transferred to a party that had previously lost the original bidding process.
Mercantile said it will continue pursuing all available legal remedies in an effort to protect shareholder interests and recover value from the Karanja Terminal project. Investors will now be closely watching next week’s tribunal hearing, which could prove pivotal in determining the future of the long-running dispute.
