RCom moves NCLAT challenging NCLT order allowing its insolvency
Ericsson had filed a plea with NCLT seeking bankruptcy proceedings against Reliance Communications over settlement of dues
New Delhi: Reliance Communications Ltd (RCom) has moved National Company Law Appellate Tribunal (NCLAT) challenging the order of National Company Law Tribunal (NCLT) allowing a plea for its insolvency filed by Swedish telecom equipment major Ericsson.
Anil Ambani-run RCom’s plea is expected to be heard by the appellate tribunal in the coming week.
RCom informed stock exchanges that it has approached NCLAT along with its two subsidiaries—Reliance Telecom and Reliance Infratel to stay the order passed by the Mumbai bench of the NCLT on 15 May.
“The Directors of RCom and two of its subsidiaries Reliance Telecom and Reliance Infratel, today filed appeals before the NCLAT challenging and praying to stay the order of NCLT Mumbai, whereby Ericsson applications had been allowed to be admitted for debt resolution under the NCLT IBC (Insolvency and Bankruptcy Code) process,” said a RCom spokesperson.
NCLT had admitted an insolvency petition filed by against and two of its subsidiaries seeking to recover Rs1,150 crore. Ericsson had signed a seven-year deal in 2014 to operate and manage RCom’s nationwide telecom network. Last September, the Swedish company had approached NCLT to recover its amount and filed insolvency plea.
Reliance Group companies have sued HT Media Ltd, Mint’s publisher, and nine others in the Bombay high court over a 2 October 2014 front-page story that they have disputed. HT Media is contesting the case.
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