Bombay Burmah shares hit Rs 1,639 on NSE after SC recalled its order on a Rs 4,655 crore lease liability.

Here’s what actually happened. Back in May, the Supreme Court had noted, in an order concerning separate civil appeals, that this lease rent amount remained to be recovered from Bombay Burmah by the Tamil Nadu government.

The company pushed back, arguing that those appeals never dealt with the lease rent issue in the first place, and that it had never been formally served a notice or given a chance to respond to the claim.

The court agreed. In its August 19 order, it found that the Rs 4,655.24 crore figure had neither been the subject of a formal notice nor finally determined after hearing the company’s side.

As a result, it recalled and expunged the earlier observation entirely. Bombay Burmah confirmed the development in an exchange filing on August 26, adding that it will keep taking the necessary steps and update stakeholders as the matter progresses.

This isn’t the only good news for the company lately. Its June quarter results, released earlier this month, showed consolidated net profit rising 19.72% year on year to Rs 288.16 crore. Revenue from operations grew 7.99% to Rs 5,088.69 crore for the quarter.

Even with today’s sharp rally, the stock remains down 12.88% since the start of the year, and 7.99% lower over the past 12 months.

As of 15:23 pm, Bombay Burmah shares were at Rs 1,611.00 on the NSE, up 12.86% for the day.

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