ZTE Corporation has initiated legal proceedings against Loop Mobile for retrieval of its outstanding payments.
Loop Mobile was in a business agreement with ZTE Corporation, and last year, the company had filed a petition against Loop Mobile in the Bombay High Court due to compliance issues, wherein the latter failed to clear dues worth $25 million.
“It has come to our notice that Loop Mobile is entering into a business deal to transfer its operating assets (subscribers) to Bharti Airtel, without keeping us informed about this. To secure our business interests, we have moved an additional application to the Bombay High Court for the recovery of the unpaid dues,” Yuan Shen, Legal Attorney, ZTE Corporation, said in a statement,
ZTE has approached the Mumbai High Court to grant interim measure of protection for securing the outstanding amount payable to ZTE from Loop Mobile, further directing Loop Mobile to deposit the amount in the form of fixed deposit or security deposit with the Bombay High Court.
The amount to be deposited shall be equivalent to the total claim of ZTE Corporation from Loop Mobile, ZTE said.
Additionally, ZTE has sought the court to pass an order directing attachment of all sums payable by Bharti Airtel to Loop Mobile and restraining Loop Mobile to sell its business to any party without permission of the court.
A Loop Mobile spokesperson could not offer any immediate comment till going to the press.
