RCom moves SC against Bombay HC, NCLT orders barring sale of assets
Reliance Communications plea in the SC seeks a stay on Bombay HC and NCLT orders barring it from selling its wireless assets to Reliance Jio
New Delhi: The Supreme Court on Monday agreed to hear Reliance Communications Ltd’s plea seeking a stay on orders of the Bombay high court and National Company Law Tribunal (NCLT) -Mumbai bench, barring the Anil Ambani-controlled company from selling its wireless assets to Reliance Jio Infocomm Ltd without prior approval.
The matter was mentioned before a bench led by Chief Justice Dipak Misra, which listed the matter for hearing on 22 March.
Earlier this month, the Bombay high court rejected RCom’s appeal against an order of an arbitration tribunal barring the sale or transfer of its assets without prior permission. The order prohibiting transfer of assets was passed in a proceeding initiated by Swedish telecom equipment maker Ericsson for recovery of Rs1,012 crore of arrears from RCom.
Separately, in a plea by HSBC Daisy Investments which had invested Rs1,100 crore in July 2007 in Reliance InfraTel, NCLT also directed RCom unit Reliance Infratel not to sell its towers and fibre assets to Reliance Jio till further order.
HSBC Daisy Investments along with some minority shareholders in Reliance InfraTel had approached NCLT alleging oppression of minority shareholders for not taking their consent for the asset sale.
In December 2017, as a part of its debt resolution plan, RCom had struck a Rs25,000 crore deal with Reliance Jio for the sale of its assets to avoid proceedings under the Insolvency and Bankruptcy Code.
RCom’s debt at the end of October 2017 stood at Rs45,000 crore
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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