NCLAT takes up RCom motion against insolvency proceedings
30 May 2018
The National Company Law Appellate Tribunal (NCLAT) is expected to hear an interim prayer by Reliance Communications (RCom) today after the Anil Ambani-led company sought an urgent hearing on the issue and the NCLAT directed the matter be listed for hearing on Wednesday.
Beleguered Reliance Communications along with its subsidiaries moved NCLAT against the insolvency proceedings set in motion by the National Company Law Tribunal (NCLT).
The NCLAT bench headed by Justice S J Mukhopadhaya suggested that the parties settle the matter themselves and posted the matter for hearing today.
Appearing for RCom, senior advocate Kapil Sibal told the NCLAT that the stressed telecom company offered its operational creditor Ericsson an up-front sum of Rs500 crore to clear all dues.
The Swedish telecommunications equipment manufacturer and service provider signed a seven-year deal with RCom and its subsidiaries in 2014 for maintaining, upgrading and developing the latter’s telecommunication infrastructure.
Ericsson’s counsel told the appellate tribunal that RCom owed it Rs978 for services rendered and that theamount has since increased to Rs1,600 crore after the Anil Ambani-led telecommunication company delayed payments to Ericsson.
The bench asked the parties to reach an amicable settlement saying, “You know the fate of operational creditors (in corporate resolution process). If you want, we would give you time for settlement.”
Reliance Communications share price jumped 11 per cent ahead of reports that the NCLAT had taken up the motion against insolvency proceedings by Reliance Communications.
Reliance Communications shares soared 18 per cent in two days after its shareholders agreed on an amicable settlement.