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NCLAT to Hear RCom Plea Against Insolvency

The National Company Law Appellate Tribunal (NCLAT) on Tuesday will hear Reliance Communication’s (RCom) appeal against the National Company Law Tribunal’s (NCLT) decision to start insolvency proceedings against Anil Ambani-controlled companies, RCom said in a statement on Monday.

“The appeals filed in the Hon’ble NCLAT against the NCLT orders admitting RCom, RITL (Reliance Infratel Limited) and RTL (Reliance Telecom Ltd) to the debt resolution process and appointment of the interim resolution professional, were mentioned for urgent hearing today,” RCom said in a statement.

The NCLT had passed the order to start insolvency proceedings while hearing a petition by Swedish telecom equipment major Ericsson on 29 May.

“The Hon’ble NCLAT has fixed the appeals for hearing tomorrow, Tuesday, May 29, 2018,” it said.

All banks and financial institutions of RCom, RITL and RTL have unanimously decided to oppose the NCLT debt resolution process, RCom said in the statement.

“Major lenders, including China Development Bank, State Bank of India and Standard Chartered Bank, have been formally impleaded to the appeal proceedings before the Hon’ble NCLAT,” it said.

RCom, along with its subsidiaries, had last week approached the Delhi-based NCLAT after the Mumbai bench of NCLT had on 15 May admitted an insolvency petition filed by Ericsson against Reliance Communications and two of its subsidiaries seeking to recover unpaid dues.

Ericsson had in 2014 signed a seven-year deal to operate and manage RCom’s nationwide telecom network. The Swedish company had alleged that it had not been paid the dues.

Ericsson had in September 2017 filed a petition with NCLT’s Mumbai bench seeking liquidation of RCom and its subsidiaries to recover Rs1,150 crore that is owed to it. – Live Mint

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