Simbhaoli Sugars has hit the upper circuit of 20% at Rs 37.25 after the company said it has received $9.8 million or Rs 55.15 crore as compensation in arbitration case for the loss of raw sugar.

“In the London Arbitration proceedings against the vessel owner / shipping company, the company has negotiated the final settlement with the P&I club of vessel owner at $9.8 million (Rs 55.15 crore) inclusive of interest and costs and received the said amount as the compensation for the loss of 22,500 MT of raw sugar due to sank vessel MV loannis in July 2009 near to South Africa," Simbhaoli Sugars said in a filing.

The company will however, pursue the legal proceedings for the balance amount of claim filed with National Consumer Disputes Redressal Commission (NCDRC), New Delhi on the repudiation of insurance claim by Cargo insurers, in an arbitrary manner, it added.

A combined 246,000 shares have changed hands on the counter so far and there are pending buy orders for 96,962 shares on the NSE and BSE.