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 Reliance Communications 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 Reliance Communications’ appeal, contending that it will lead to outgo of public money for settling payment of a private party.
He said Reliance Communications 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 Reliance Communications.
Senior lawyer Kapil Sibal, appearing for Reliance Communications, appealed for payment to be made to Ericsson from the trust and retention account held by State Bank of India under which assets of the telecom firm have been mortgaged.
Reliance Communications has been asked by both the Supreme Court and the NCLAT to pay Rs 550 crore to Ericsson.
The company has paid Rs 118 crore to Ericsson. —FE