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NCLAT reserves order on Rcom plea to use tax refunds to clear dues

FE Bureau
nclat, rekiance communications, rcom

The National Company Law Appellate Tribunal (NCLAT) on Wednesday reserved its order on a petition by Reliance Communications seeking the release of income-tax refunds to clear dues of Ericsson India. Lenders of RCom have opposed the plea.

After hearing both the sides, the NCLAT bench headed by chairperson SJ Mukhopadhyay reserved the order in the case.

Senior lawyer Neeraj Kishan Kaul, appearing for State Bank of India, argued for rejection of the RCom s appeal, contending that it will lead to outgo of public money for settling payment of a private party.

He said RCom asset monetisation deal failed because RJio refused to take responsibility of past dues of the Anil Ambani-led firm before the department of telecommunications and hence, it is not liable to make payment on behalf of RCom.

Senior lawyer Kapil Sibal, appearing for RCom, appealed for payment to be made to Ericsson from the trust and retention account held by SBI under which assets of telecom firm have been mortgaged.
RCom has been asked by both the Supreme Court and the NCLAT to pay Rs 550 crore to Ericsson.

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The company has paid Rs 118 crore to Ericsson and if it fails to pay the rest of the amount by March 19 then RCom chairman Anil Ambani will have to face jail term for the contempt of court order.