(Reuters)
(Reuters)

NCLAT stays DoT show cause notices to RCom for cancellation of spectrum licence

  • The National Company Law Appellate Tribunal stayed DoT's letter to Axis Bank to encash its bank guarantees worth 2000 cr
  • The appellate tribunal also issued a notice to the DoT and directed to list the matter on 8 April along with the main case

New Delhi: The National Company Law Appellate Tribunal (NCLAT) on Tuesday stayed the two notices issued by the Department of Telecommunications (DoT) to debt-ridden Reliance Communications for cancellation of its spectrum licence for delay in payment.

A two-member bench headed by chairman justice S.J. Mukhopadhaya also stayed the DoT's letter dated 20 March 2019 to Axis Bank to encash the bank guarantee of 2,000 crore given by the Anil Ambani group firm.

The appellate tribunal said the show cause notices to RCom and letter to Axis Bank by the government were against the order passed by it on 4 February, when it had granted protection against any asset sale without its permission.

"The show cause notices of 14 and 15 March and letter dated 20 March 2019 by DoT is against the direction passed by this tribunal," the NCLAT said.

The appellate tribunal also issued a notice to the DoT and directed to list the matter on April 8 along with the main case.

The NCLAT's direction came after the hearing of an application moved by RCom.

Earlier on 4 February, the tribunal had said that until further orders of the NCLAT or the Supreme Court, no one can sell, alienate, or create third-party rights over RCom's assets.

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. 

This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed

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