RCom Moves NCLAT Challenging Order Allowing Plea for its Insolvency
Reliance Communications has moved National Company Law Appellate Tribunal challenging the order of NCLT allowing a plea for its insolvency filed by Swedish telecom equipment major Ericsson.
Anil Ambani-run RCom’s plea is expected to be heard by the appellate tribunal in the coming week.
RCom informed stock exchanges that it has approached NCLAT along with its two subsidiaries – Reliance Telecom and Reliance Infratel to stay the order passed by the Mumbai bench of the National Company Law Tribunal (NCLT) on May 15.
“The Directors of RCom and two of its subsidiaries Reliance Telecom and Reliance Infratel, today filed appeals before the NCLAT challenging and praying to stay the order of NCLT Mumbai, whereby Ericsson applications had been allowed to be admitted for debt resolution under the NCLT IBC (Insolvency and Bankruptcy Code) process,” said a RCom spokesperson.
NCLT had admitted an insolvency petition filed by against and two of its subsidiaries seeking to recover Rs 1,150 crore.
Ericsson had signed a seven-year deal in 2014 to operate and manage RCom’s nationwide telecom network.
Last September, the Swedish company had approached NCLT to recover its amount and filed insolvency plea.- Business Standard
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