Adding to the growing pains of the Norwegian telecom operator,Telenor,the Company Law Board (CLB) on Thursday dismissed its plea against its joint venture partner,the realty firm Unitech,by referring the dispute between the two partners over management control and transfer of assets of their joint venture mobile firm,Uninor to arbitration in Singapore.
Disappointed with the judgment,Telenor said,We are yet again surprised at the order of the CLB. We will certainly challenge this order in a higher court,as we have successfully done on matters earlier. Our intention remains to establish a new company as a platform for the future and transfer all Uninor assets,employees and customers to it.
Unitech on the other hand was pleased with the judgment and said that the CLB had accepted its plea and respected the shareholders agreement which clearly defines the dispute resolution mechanism for settlement of the issues relating to the shareholders agreement.
Allowing Unitechs plea,CLB chairman Justice BR Deshmukh ordered that the issue relating to valuation of its stake in Uninor and other matters to Singapore arbitration in accordance with the clauses of their shareholding agreement.
The bone of contention between the partners is the Uninors valuation in which Telenor holds a controlling stake of 67.25 per cent. The evaluators appointed by the Telenor have fixed Uninors value at Rs 600 crore. Unitech,however,said the company should be valued at over Rs 12,000 crore.