Tribunal restrains RCom from selling assets

Team SoOLEGAL 6 Mar 2018 12:05pm

Tribunal restrains RCom from selling assets

Mumbai:In an order given on an application filed by Swedish equipment maker Ericsson to recover dues worth Rs 1012 crore from RCom,the  Arbitration court comprising former SC Judges ,Justice Swatanter Kumar, Justice VS Sirpurkar and Justice SB Sinha,the court has restrained the company from transferring or selling assets without its permission.The court has set June 9 as the next date of hearing. This ruling will hit RCom badly as it will affect it plans of resolving debt with lenders. By March end the company planned sale of most of its wireless assets including spectrum, tower, fibre and media convergence nodes to Mukesh Ambani-owned Reliance Jio Infocomm for over Rs 20,000 crore .

The company is likely to appeal the ruling in High Court.

While delivering the interim order,the judges said, “The respondent (Ericsson) has made an arguable case and the tribunal is of the opinion that in the event it is denied any relief, it will suffer an irretrievable injury".

Ericsson had contended if RCom was allowed to sell or transfer its assets, it will just turn RCom into shell company and it wouldn’t be able to get its money back.

Tagged: Ericsson   RCom   JIO   Arbitration  
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