Bombay Burmah Trading Corporation Ltd. shares rallied 13% in early trade on Thursday after the Supreme Court recalled its earlier observation regarding a Rs 4,655.24 crore lease-rent liability.
The stock was trading at Rs 1,622 apiece on NSE at 10.04 am today, gaining from its previous close at Rs 1,426.2.
Bombay Burmah Shares Rallies as SC Recalls Order
The development removes a major legal overhang for the company, with investors tracking the potential impact of the court's order on Bombay Burmah's financial position and ongoing litigation.
Supreme Court Recalls Lease Rent Observation
The Supreme Court, in its order dated Aug. 19, 2026, allowed Bombay Burmah's interlocutory application seeking recall and expunging of the observation made in paragraph 59 of its May 29 order.
In the earlier order, the court had recorded that lease rent of Rs 4,655 crore "remains to be recovered" by the state government from the company. Bombay Burmah subsequently approached the court, arguing that the civil appeals did not concern the issue of lease rent and that no notice, demand or computation of the alleged amount had been served on the company.
The company also said it had not been given an opportunity to object to or be heard on the alleged lease-rent liability.
The Supreme Court, in its Aug. 19 order, noted that the Rs 4,655.24 crore amount had neither been the subject matter of a notice served on Bombay Burmah nor finally determined after providing the company an opportunity of hearing. The court consequently held that the observations in paragraph 59 warranted recall.
The matter relates to ongoing judicial proceedings concerning the company's erstwhile tea estate in Singampatti, Tamil Nadu, under Civil Appeal Nos. 6395-6397 of 2025. Bombay Burmah said the civil appeals themselves did not pertain to the question of lease rent.
The company's August 26 disclosure said it would continue to take necessary steps in the matter and keep stakeholders informed of material developments.
Stock Price Movement
Despite the stock rallying today, it has remained down over a year, losing around 10.5% during the past year, and 15.26% in 2026 itself.
Currently, the stock is trading at a price-to-earnings multiple of 3.85 times with a market cap of Rs 11,120.9 crore.
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