NCLAT reserves order in RCom-Ericsson payment case

The National Company Law Appellate Tribunal Wednesday reserved its order on a petition by Reliance Communications which has approached the tribunal seeking the release of income tax refunds to clear dues of Ericsson.

Lenders of RCom have opposed the plea, saying that it will lead to outgo of public money for settling payment of a private party.

After hearing both the sides, the NCLAT bench headed by Chairperson S J Mukhopadhaya reserved the order in the case.

The chairman said that both the parties should see the case as a resolution process rather than seeing it as a suit and principle of resolution is to save the company so that creditors get the maximum from assets.

He said that in case liquidation proceedings are invoked against RCom then all the creditors including Ericsson will have to pay back the amount that they have received from RCom and projected valuation of company's asset of Rs 38,000 crore may fall to Rs 2,000-3,000 crore.

"Ericsson will get 20-30 per cent from it," ...