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RCom suffers a blow as SC asks parties to maintain status quo

Team SoOLEGAL 23 Mar 2018 3:53pm

RCom suffers a blow as SC asks parties to maintain status quo

New Delhi: Anil Ambani led RCom suffered a major blow in its efforts to sell its assets to JIO to pay off its lenders as the Supreme Court directed maintenance of status quo on the sale of assets of about Rs 25,000-crore to Reliance Jio. On the plea of Ericsson, which claimed unpaid dues of about Rs 1150 crore from RCom, a tribunal had stayed the asset sale which was challenged by the company in Bombay High Court.The High Court had upheld Tribunals order.In the meantime banks fearing their losing out in recovery of loans filed a counter plea in Bombay High Court.The High Court did not offer them relief.

The banks led by SBI approached SC. While hearing their plea a bench, comprising justices AK Goel, RF Nariman and UU Lalit, refused to vacate the stay on the asset sale, ordered by an arbitral tribunal early this month but said the sale will be subject to its final order. The court  posted the matter for further hearing on April 5 and asked all the parties to file their written submissions by March 28.

SBI has said it had total dues worth Rs 4,027 crore against R-Com Consolidated and asserted that unsecured creditor cannot make claims over secured creditors. Apart from SBI, 24 other Indian lenders constitute the Joint Lenders Forum. They had initiated a sale through bidding for RCom Consolidated’s assets.

Reliance Jio had agreed to buy spectrum, cell towers and other infrastructure, including 1.78 lakh km of fibre optics line, for Rs 17,300 crore. Apart from monetisation of secured assets, two properties of RCom Consolidated in Delhi and Chennai were proposed to be sold to third parties for Rs 800 crore.

During the hearing, Additional Solicitor General Tushar Mehta, appearing for joint lenders forum led by State Bank of India, said they were secured lenders and their claim took precedence over others parties including the unsecured creditors.

Senior advocate Mukul Rohatgi, appearing for R-Com, said Swedish telecom equipment maker Ericsson, which had first approached the tribunal that restrained the sale, was an unsecured operational creditor and much lower in priority of getting the money.

Senior advocate Ranjit Kumar, appearing for Ericsson, said if the stay order was vacated, the company would remain remedy-less and may not get its dues back.. The bench, after hearing all the sides, posted the case to April 5 for final hearing.

As Jio’s bid was being finalised, Ericsson moved the arbitral tribunal and sought to restrain sale of RCom Consolidated’s assets on the ground that it had a claim of Rs 1,150 crore on the debt-ridden private telecom firm. The tribunal on March 5 gave an order in support of Ericsson and on March 8, the HC dismissed RCom’s appeal against it.

 



 




Tagged: RCom   Jio   SC   Ericsson   SBI  
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