New Delhi: Reliance Communications Ltd (RCom) asked the Supreme Court to allow the company to withdraw its application against insolvency. Ericsson India, which had dragged the beleaguered telecom company to insolvency last year, today submitted before the top court that the insolvency should end now since it has received its dues. The Apex court bench headed by Justice Rohinton Nariman said it will hear the case on Thursday. Earlier this month, RCom paid Rs 5.5 bln that it owed to its operational creditor Ericsson.
The insolvency proceedings against RCom and its two subsidiaries – Reliance Telecom and Reliance Infratel were initiated last year by Ericsson India to recover about Rs 15 billion. Later, on May 31, with the consent of banks, a settlement was reached and it was agreed that Reliance Communications will pay 5.5 bln rupees to the Swedish company. With that sum paid earlier this month, Reliance Communications has stated that it wants to go back into insolvency.
Meanwhile, the National Company Law Appellate Tribunal on Tuesday stayed the two notices issued by the DoT to debt-ridden RCom for cancellation of its spectrum licence for delay in payment. A two-member bench headed by Chairman Justice S J Mukhopadhaya also stayed the DoT’s letter dated March 20, 2019 to Axis Bank to encash the bank guarantee of Rs 2,000 crore given by the Anil Ambani group firm. The appellate tribunal said the show cause notices to RCom and letter to Axis Bank by the government were against the order passed by it on February 4, when it had granted protection against any asset sale without its permission.
