Tata Sons had decided to end the long-pending dispute with NTT DOCOMO, Japan. This is first major decision made after the appointment of former CEO of Tata Consultancy Services, N Chandrasekaran as chairman of Tata Sons. This agreement means that USD1 .18 billion already deposited by Tata Sons with the Delhi High Court will be paid to DOCOMO, subject to court order.
In a statement issued by Tata Sons, it stated this decision is in the larger national interest of preserving a fair investment environment in India. The company stated that it has reached an agreement with NTT DOCOMO on a joint approach to enable enforcement of London Court of International Arbitration (LCIA) award. This agreement means that Board of Tata Sons has decided to withdraw its objections to the enforcement of the Award in India.
Both the parties approached the Delhi High Court, requesting it to accept their agreed terms of settlement, subject to such further orders as the Court sees fit. If this application is approved by the Delhi High Court, it will clear the way for the $1.18 billion already deposited by Tata Sons with the Delhi High Court to be paid to DOCOMO, and would allow DOCOMO to transfer its shares in Tata Teleservices Limited.
On the other hand, DOCOMO has agreed to suspend its related enforcement proceedings in the United Kingdom and the United States for a period of time.
“This agreement between the parties is a significant step towards resolution of this dispute, and both Tata Sons and DOCOMO are hopeful that they will continue to work together constructively to achieve a resolution of this case as well as will look to further collaboration in the future,” Tata Sons said in its statement.
