RCom-Ericsson case: NCLAT declines to direct SBI to release Rs 259 cr
Team Udayavani, Mar 16, 2019, 6:47 AM IST
New Delhi: Just days ahead of the expiry of the Supreme Court deadline to Anil Ambani to pay Ericsson dues, the NCLAT on Friday refused to direct State Bank of India to release Rs 259 crore of income tax refund for making such payment, saying it does not has jurisdiction to do that.
The apex court has asked RCom group to pay Rs 453 crore in four weeks, by March 19, failing which Ambani will have to go to jail.
“… in an appeal filed under Section 61 of the ‘I&B Code’ (insolvency and bankruptcy code), no direction can be given to any party to the settlement (particularly the third party) to perform certain duties to ensure settlement between other parties,” NCLAT bench of Chairman Justice S J Mukhopadhyaya and member (Judicial) Justice Bansi Lal Bhat said.
It said that since the case in this regard is also before the apex court, the NCLAT is “not vacating the interim order dated 30th May 2018, nor passing any direction to refund any amount to anyone or other party, till some order is passed by the Hon’ble Supreme Court”.
As per the interim order, the ‘Financial Creditors’/ ‘Joint Lenders Forum’ with whom the assets of the RCom have been mortgaged have been allowed to sell the assets of the company and deposit the total amount of lenders forum.
However, if appeals before NCLAT are rejected then lenders and creditors, including Ericsson, will have to return the total amount in the account of RCom for further proceedings.
Reliance Communications has filed an appeal before NCLAT to direct SBI to release income tax refund of Rs 259.22 crore that the company has received in trust and retentionship account which is held at the public sector bank. SBI and other lenders to RCom had opposed the move.
RCom lawyer Kapil Sibal during the hearing of the case had said that the company will borrow rest of the amount from banks to make payment of Rs 453 crore to Ericsson. RCom has already paid Rs 118 crore to Ericsson.
Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.
Bengaluru: Man cheats friends & relatives to fulfil gambling addiction; arrested
Terror funding case: NIA seeks death penalty for Yasin Malik
PIL on same status for ‘Vande Mataram’ as national anthem: HC seeks Centre, Delhi govt’s response
Related Articles More
Vipul Organics hires a veteran of Chemicals Industry as Head of Sales and Marketing
Sri Lanka picks Lazard Clifford Chance as advisers for debt restructuring
Sensex climbs over 132 points in early session; surrenders gains in volatile trade
Sensex jumps 311 points in early deals; Nifty gains over 83 points
DLF net debt dips 45 pc to Rs 2,680 cr in FY 22; aims further debt reduction in medium-term
Hard to digest she is not with us anymore: Brother of singer found dead in Haryana
BSY indicates bigger role for son in K’taka BJP, after denial of ticket for MLC elections
M’luru: Car catches fire on busy PVS Circle road
SAEINDIA announces the 2nd Edition of International Aerospace Conference – “AEROCON 2022”
2017 actress assault case: Victim’s fears unfounded, govt wants to ensure justice to her, state tells Kerala HC