In a major setback to Anil Ambani’s Reliance Communications (RCom), the Bombay High Court on Thursday dismissed its appeal against an arbitration order which “restrained” the sale or transfer of the telco’s assets without prior permission.
This may further delay the asset sale plan by RCom to Mukesh Ambani led Reliance Jio for ₹ 25,000 crore, which was announced in December and was likely to be completed by this month end.
RCom, with debts of $7 billion is racing against time to pay its 35 lenders, saw its share closed down marginally at ₹25.15 in a firm Mumbai market on Thursday.
Justice R.D. Dhanuka had dismissed the petition filed by RCom and its two subsidiaries Reliance Infratel and Reliance Telecom after hearing both sides for three hours.
“My client interests are protected after the court dismissed their appeal,” Anil K Kher, senior advocate representing the Indian arm of Swedish equipment makerEricson told The Hindu.
Ericsson, which signed a seven-year deal in 2014 to operate and manage RCom’s nationwide network, had filed the insolvency petition in September 2017, seeking total dues of ₹ 1,150 crore, an amount disputed by RCom.
When asked for comments, a RCom spokesperson in an e-mail reply to query by this paper said, “We intend to file an appeal against the interim order of the Hon'ble Mumbai High Court. The claims of secured financial lenders stand higher in priority as compared to Ericsson, which is an unsecured operational vendor. Further, the sale of assets is being undertaken in pursuance of the decisions of the secured financial lenders.”
