Reliance Communications moves NCLAT for fund release by bankshttps://indianexpress.com/article/business/companies/reliance-communications-moves-nclat-for-fund-release-by-banks-5600767/

Reliance Communications moves NCLAT for fund release by banks

A two-member bench, led by chairperson SJ Mukhopadhaya, agreed to hear the plea and listed it for hearing on February 27.

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The Supreme Court on February 20 held RCom chairman Anil Ambani and two other directors guilty of contempt for not paying Ericsson India’s dues as per the undertaking given by them.

Reliance Communications on Monday urged the National Company Law Appellate Tribunal (NCLAT) to direct lenders, led by State Bank of India (SBI), to release Rs 260 crore the company got by way of income tax refund, in favour of Ericsson India.

The Supreme Court on February 20 held RCom chairman Anil Ambani and two other directors guilty of contempt for not paying Ericsson India’s dues as per the undertaking given by them.

The court also said that if they failed to pay the due amount of Rs 550 crore within four weeks they will serve a three-month prison term. On Monday, RCom’s lawyers made a mention of their plea immediately as the NCLAT sat for the day. A two-member NCLAT bench, led by its chairperson justice SJ Mukhopadhaya, agreed to hear the plea and listed it for hearing on February 27.

RCom’s case against Ericsson is pending before the appellate tribunal and therefore the mention was made before it.

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In May last year, Ericsson had moved NCLT Mumbai bench seeking insolvency against RCom for failing to pay its dues. RCom had then moved NCLAT against Ericsson’s move. Subsequently on February 1, RCom itself decided to go for insolvency and therefore wants to withdraw its appeal in the appellate tribunal.

On February 4, the NCLAT had allowed Ericsson to file its reply on RCom’s plea for withdrawal of the appeals. The appellate tribunal had also directed the company not to sell, transfer or alienate any moveable or immoveable property of the company without the prior permission of the NCLAT. —FE