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Bombay HC dismisses RCom plea against tribunal's assets sale order

Team SoOLEGAL 9 Mar 2018 6:42pm

Bombay HC dismisses RCom plea against tribunal's assets sale order

Mumbai :The Bombay High Court rejected a plea by Reliance Communications to stay  an arbitration tribunal order that restrained the telecom company from selling its assets.The tribunal's order had come after Swedish telecom equipment maker Ericsson moved a petition to recover unpaid dues  to the tune of Rs1150 crore from the Anil Ambani-led company RCom.

The tribunal's order was a setback to the telecom company which wanted to sell it assets to Reliance Jio for Rs 25,000 crore and the deal was to close by March end.

RCom had signed a seven year contract with Ericsson by which Swedish telecom equipment maker was to operate and manage the network.In September 2017 it filed a plea with Arbitrator seeking release of its dues of Rs 1,150 crore.RCom disputes the amount. The tribunal on March 5 ordered RCom not to sell or transfer the assets without its permission and set the next hearing for June 9.

Ericsson lawyer Anil Kher argued that the telco’s conduct since December 2016 of repeatedly promising to clear all outstanding dues by selling its assets showed it had no intention of paying up, which is considered as a fraud.


RCom objected to the tribunal’s verdict on March 6 stating that Ericsson was an unsecured creditor. They said that the local arm of Swedish infrastructure provider was using pressure tactics to be on par with secured lenders.It said it will appeal court’s order.

RCom is selling assets including spectrum, mobile towers and optical fibre network and Reliance Jio. The deal is expected to be completed by March end and bring relief to RCom, which is reeling under debt of around Rs45,000 crore.



Tagged: Bombay High Court   Ericsson   RCom   Reliance Jio  
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