SC seeks response from Anil Ambani’s RCom on Ericsson contempt plea

Ericsson had moved initiation of contempt proceedings for the second time against Reliance Communication chairman Anil Ambani for allegedly not complying with its order to clear dues of Rs 550 crore.

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Anil Ambani’s crisis-ridden telecom services firm has a debt of over Rs 47,000 crore.. (File/Express photo by Prashant Nadkar)

The Supreme Court Monday issued a notice seeking a reply within four weeks from Reliance Communication Ltd. (RCom) Chairman Anil Ambani on a contempt petition filed by Ericsson India Pvt Ltd over non-payment of dues. The Swedish telecom gear maker had moved initiation of contempt proceedings for the second time against Ambani for allegedly not complying with its order to clear dues of Rs 550 crore.

The crisis-ridden telecom services firm has a debt of over Rs 47,000 crore.

Appearing for R Com, senior advocates Kapil Sibal and Mukul Rohatgi asked the court to accept Rs 118 crore towards outstanding dues to Ericsson India to establish its bonafide. The counsel appearing for Ericsson, however, refused to accept the amount and said the entire outstanding sum of Rs 550 crore should be deposited.

The bench, headed by Justice R F Nariman, then directed R Com to deposit a demand draft of Rs 118 crore in the registry.

The debt-ridden Reliance Communications had yesterday accused Ericsson, which is an operational unsecured creditor of the company, of attempting media trial and sensationalising the issue of dues recovery.

“It is deeply regrettable that Ericsson India Private Limited (Ericsson), an operational unsecured creditor, is attempting a trial by media and sensationalising issues, as evidenced in recent media reports,” RCom spokesperson said in a statement.

(Inputs from PTI)