NCLAT Adjourns Anil Ambani’s RCom’s Insolvency Plea To 6 March
The National Company Law Appellate Tribunal (NCLAT) adjourned the hearing over Reliance Communications’ plea to proceed with the insolvency process to March 6. A two-member bench headed by Chairman Justice S J Mukhopadhaya said a matter is also pending before the Supreme Court against RCom and hence adjourned it. “As the matter is pending before the Hon’ble Supreme Court, we adjourn the matter. “Post the case ‘for orders’ on 6th March, 2019. Parties will inform the development,” the appellate tribunal said.
On February 4, the NCLAT had allowed telecom gear maker Ericsson India to file its objection by February 8 over Reliance Communications’ plea to proceed with insolvency process.
However, it had also said that until further orders of the NCLAT or the Supreme Court, no one can sell, alienate, or create third party rights over RCom’s assets. The NCLAT was hearing applications moved by three Reliance Group employees – Satish Seth, Punit Garg and Suresh Madihally Rangachar – seeking withdrawal of their appeals against the orders of the Mumbai bench of the National Company Law Tribunal (NCLT).
On May 15, 2018 the Mumbai bench of NCLT had admitted an insolvency petition filed by Ericsson against Reliance Communications and two of its subsidiaries seeking to recover unpaid dues. However, on May 30, the NCLAT granted a conditional stay on insolvency proceedings against RCom and its subsidiaries — Reliance Infratel and Reliance Telecom. The tribunal had directed RCom and its subsidiaries to pay Rs 550 crore to Ericsson India in 120 days, failing which it will direct insolvency proceedings against the company.
On February 1, RCom had informed that it has decided to opt for insolvency proceedings following its failure to sell assets for paying back its lenders. RCom even failed to sell spectrum to Mukesh Ambani’s Reliance Jio, a deal that was expected to bring some relief to the cash-strapped company.―Financial Express
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