NEW DELHI: The National Company Law Appellate Tribunal (NCLAT) on Monday said that it would decide on the insolvency of debt-ridden Reliance Communications (RCom) soon, with the company pleading for a go-ahead from the tribunal for insolvency proceedings.
While RCom wants to initiate insolvency proceeding due to its inability to pay back lenders, one of its creditors—Swiss telecom major Ericsson—opposes the move. The NCLAT on Monday said that if RCom was to go into insolvency, Ericsson would have to pay back the Rs 550 crore it received last month from the Anil Ambani firm after a legal battle in the Supreme Court.
“Why one party will take the amount and let the financial creditors suffer,” asked the two-judge NCLAT bench headed by chairman Justice S J Mukhopadhaya. The NCLAT also said that it would consider, at the next hearing on April 30, the reply filed by the Department of Telecom (DoT) over RCom’s plea against a show cause notice issued by the government over unpaid spectrum charges. The NCLAT had stayed the two notices issued by the DoT to RCom over the cancellation of its spectrum licence on March 26.