NCLT gives RCom and Ericsson a week’s time to negotiate

The National Company Law Tribunal has given Reliance Communications and Ericsson a week’s time to negotiate a settlement. NCLT has not however admitted Ericsson's insolvency petition against RCom, and will now hear the matter on March 21, said lawyers present in the court.

Ericsson had earlier told the tribunal that RCom had not paid them their dues for the past two years and only few post-dated cheques were given. In September, it filed a case of insolvency in the NCLT against the operator to recover Rs 1,150 crore for services and equipment supplied. Negotiations between the two to reach an out-of-court settlement have failed so far.

RCom facing a debt of Rs 45,000 crore is fighting multiple legal battles and plans to sell most of its wireless assets to Reliance Jio Infocomm (Jio). However, in a separate legal battle with Ericsson, an arbitration tribunal has issued an interim order restraining the telco from selling its assets till further directive from the tribunal. RCom had appealed against the court's order in Bombay High Court but that too was rejected. The company will now file an appeal challenging this decision.