Dismissing Norwegian telecom firm Telenor’s plea against its partner Unitech, the Company Law Board (CLB) on Thursday referred the dispute over management control and transfer of assets of their joint venture, Uninor, to arbitration.
Allowing the plea of Unitech, CLB Chairman Justice B.R. Deshmukh ordered that the issue relating to valuation of the real estate firm’s stake in Uninor and other matters to Singapore arbitration as per the clauses of their shareholding agreement.
The CLB dismissed plea of Telenor opposing arbitration in the dispute.
The order came over cross petition filed by Unitech and Telenor against each other before CLB.
Telenor holds 67.25 per cent stake in Uninor, whose telecom licences were among the 122 cancelled by Supreme Court last month.
Following the cancellation of licences, Telenor accused Unitech of breach of warranties and sought damages.