NCLAT dismisses contempt petition against Anil Ambani over RCom payment default

A two-member bench headed by NCLAT Chairman Justice S J Mukhopadhaya, dismissed any contempt plea against Ambani and his officials.
Reliance Group chairman Anil Ambani (File | PTI)
Reliance Group chairman Anil Ambani (File | PTI)

NEW DELHI:  In what may come as relief for Reliance Group chairman Anil Ambani, the National Company Law Appellate Tribunal (NCLAT) on Tuesday dismissed a contempt petition filed against him and other officials by minority shareholders, alleging non-payment of dues by Reliance Infratel.

The Mauritius-based HSBC Daisy Investments had moved NCLAT alleging that Reliance Infratel, a subsidiary of Reliance Communications (RCom), had defaulted on payment of Rs 230 crore. Reeling under around Rs 50,000 crore debt and unable to monetise its assets, RCom had in February opted for bankruptcy. It is presently undergoing resolution proceedings under the Insolvency and Bankruptcy Code (IBC). 

A two-member bench headed by NCLAT chairman Justice S J Mukhopadhaya dismissed the contempt plea against Ambani and his officials. “We have found that no case has been made out for contempt,” the bench said.

Earlier this month, the appellate tribunal had reserved its order, saying that it will decide whether the contempt petition filed by HSBC Daisy and others should be admitted, as RCom is undergoing insolvency proceedings. The counsel appearing for the resolution professional said since RCom was under the moratorium period under the IBC, it cannot pay. Separately, there are talks that RCom’s lenders may demand Ericsson India to return Rs 580 crore it had received from the telco earlier. 

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