SC rejects RCom's plea for more time to pay to Ericsson
14 December 2018
Anil Ambani-led telecom company Reliance Communications Ltd faces contempt proceedings if it fails to pay Rs550 crore to Ericsson in order to proceed with the spectrum sale to Reliance Jio, the Supreme Court told the company today reiterating its earlier order.
The apex court was hearing a petition filed by RCom in which it sought an extension of the 15 December deadline to clearing payment that are due to its service provider Ericsson.
The apex court had, in October, told RCom that the 15 December date was the final deadline for the company to pay up and any delay would attract an interest of 12 per cent per annum.
RCom, meanwhile, told the court that it has not so far received the ‘no objection certificate’ that they had sought from the Department of Telecommunications for the Reliance Jio deal.
The Supreme Court had ordered the DoT to issue the NOC after RCom agreed to deposit corporate guarantee of Rs1,400 crore.
RCom also filed a contempt plea against the DoT for failing to issue the NOC. The contempt plea will come up for hearing in the apex court tomorrow.
If RCom fails to pay up the amount due to Ericsson, it could be staring at prospect of insolvency after the SC declined to grant it two weeks extra time to clear the Rs550 crore dues of Ericsson.
RCom had reached the agreement to pay up the Rs550 crore dues it owes to Ericsson on service contracts at the National Company Law Appellate Tribunal (NCLAT). While asking RCom to clear the dues, the NCLAT had said Ericsson could revive the insolvency petition against the company if it failed to pay within the stipulated deadline.