NCLAT order on partial sale of RCom assets to Reliance Jio stayed by SC

Team SoOLEGAL 17 Apr 2018 11:50am

NCLAT order on partial sale of RCom assets to Reliance Jio stayed by SC

New Delhi:  Acting on a plea moved by minority shareholder HSBC Daisy Investments (Mauritius) in Reliance Infratel,Justice Rohinton F. Nariman of Supreme Court stayed the NCLAT order allowing sale of  tower and Fibre assets of RCom to Jio. The court said stay will be applicable until NCLAT decides the case.

NCLAT will next hear the case on April 18.

However the company can sell or transfer spectrum, media convergence nodes (MCN) and real estate (at New Delhi, Chennai, Kolkata, Jigni and Tirupati) as part of the deal.Still the company plans to raise Rs 25,000 crore rupees by sale of assets to Jio will be affected. The company has a total outstanding debt of Rs 45,000 crore on its books.

“Stay of NCLAT’s impugned order until final outcome of the case before the tribunal,” said Justice Rohinton F. Nariman. He also observed that the order passed by the NCLAT was not passed in the right manner and should not have been passed.

Following refusal of SC to give a stay against transfer of assets of Rcom to Jio and SC asking Rcom to approach NCLAT for vacating the stay on fibre and tower, the Rcom approached NCLAT and on April 6 was able to get stay lifted. Now with the latest SC order, the transfer process will be further delayed.

Tagged: Rcom   Jio   NCLAT   SC  
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