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Rcom Approaches NCLAT Seeking The Release Of Funds By The Banks:

Courtesy/By: Sandeep G | 28 Feb 2019

Reliance Communication urged the National Company Law Appellate Tribunal to issue directions to the banks (lenders) to release funds to the tune of 260 crores, which the company secured as an income tax refund, for paying the dues to Ericsson India. Earlier, the Apex Court of India held RCom’s chairman Anil Ambani along with two other people guilty of contempt for defaulting the payment of dues to Ericsson India.

The Court said that the borrowers would have to face three-month imprisonment if they fail to pay within four weeks the due amount Rs. 550 crores.Immediately, the lawyers appearing for RCom approached the NCLAT bench, led by its chairperson Justice SJ Mukhopadhaya, and the case has been posted for hearing on February 27.

It is pertinent to note that Ericsson India had moved an application before NCLT Mumbai Bench against Rcom for default of payment, and Rcom, in turn, approached NCLAT against the move ofEricsson India. Subsequently, RCom filed for the withdrawal of appeal made by it in the appellate tribunal. On February 4, the NCLAT had permitted Ericsson India to file its response against the withdrawal of appeal made by the RCom and directed Reliance Communication not to engage in the sale, transfer or alienate any moveable or immovable property of the company without obtaining prior permission of the NCLAT.

Courtesy/By: Sandeep G | 28 Feb 2019