FE: Ericsson case: Supreme Court to hear RCom plea

27 March 2019: The Supreme Court will hear on Thursday Reliance Communications’ plea seeking permission to withdraw its appeal against initiation of insolvency proceedings by Ericsson India last year. A Bench led by Justice RF Nariman will also hear on Thursday another application by Ericsson which also wants to end the insolvency proceedings it had initiated against RCom and its two group firms – Reliance Infratel and Reliance Telecom – last year as the beleaguered telecom company had paid Rs 550 crore to Ericsson as per the apex court’s orders.

Ericsson, in its application, stated that it has received the settled payment of Rs 579.74 crore “with up to date interest for the same (excluding TDS Certificates under Income Tax Act, 1961 for an amount of Rs 2.9744 crore).”

RCom’s dues to Ericsson arose out of a settlement reached on May 30, 2018 when the beleaguered telecom company had agreed to repay dues of Rs 550 crore to the Swedish equipment supplier by September 30, 2018. However, RCom failed to pay the money, saying that its sale of spectrum to Reliance Jio Infocomm had not gone through.

RCom had failed to pay for its supplies procured from Ericsson in 2014, the latter initiated insolvency proceedings against it before NCLT to recover Rs 1,500 crore. Subsequently, the two parties arrived at a settlement on May 30 before NCLAT by which RCom was required to pay Rs 550 crore.

The NCLAT had also on May 30, 2018 halted insolvency proceedings against RCom after the case was admitted by the Mumbai bench of National Company Law Tribunal on May, 16, 2018. This appellate tribunal had also then allowed the Joint Lender Forum with whom the assets of the Reliance companies are mortgaged, and also the three companies to sell the assets of the beleaguered companies and to deposit the sale proceeds with SBI.

The Financial Express reported



Categories: General News, India Bankruptcy

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