NTT DOCOMO on Wednesday filed with the Delhi High Court its response to the appeal by Tata Sons on September 2 to stop the enforcement of an arbitration award by the London Court of International Arbitration (LCIA).
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“The response deals comprehensively with the objections which Tata raised to enforcement in India of the award granted in Docomo’s favour by the London Court of Arbitration on June 22. As Docomo noted at the time, Tata’s filing represented the latest in a series of roadblocks constructed to prevent enforcement,” the Japanese telecom company said in a statement. In June, the LCIA awarded Docomo $1.17 billion in damages after deciding that the commercial agreement between the parties was valid when Docomo picked up stake in Tata Teleservices Ltd in 2009. The deal included a non-performance clause, as per which Docomo could invoke a put option to sell back its 26.5 per cent at a minimum of half of Rs 7,250 crore it paid for the share purchase.
Commenting on the development, a Tata Sons spokesperson said: “We are yet to examine Docomo’s response. We reiterate our earlier position that enforcement of the award in the absence of RBI’s approval would be violative of FEMA and therefore any action towards implementing the award – whether in India or overseas – would be unlawful and against public policy. Parties have presented their respective position before the Delhi High Court and it is now for the Hon’ble Court to take a final view in this matter. The amount Docomo claims under the award is already fully secured after Tata voluntarily deposited that amount (INR equivalent of $1.17 billion) with the Court.
Since a judicial process is underway, we would not like to comment further on the legal case. We, however, would like to make a renewed appeal to our JV partner to join us in engaging with the authorities to reach an amicable resolution of this issue.”