New Delhi, March 26 (IANS) The National Company Law Appellate Tribunal (NCLAT) on Tuesday stayed the two notices issued by the Department of Telecom (DoT) to Reliance Communications (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 the letter to the 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.
“The show cause notices of March 14 and 15 and letter dated March 20, 2019 by DoT are against the direction passed by this tribunal,” the NCLAT said.
The appellate tribunal also issued notice to DoT and directed to list the matter on April 8 along with the main case. The direction came over hearing of an application moved by RCom.
Earlier on February 4, the tribunal had said that until further orders of the NCLAT or the Supreme Court, no one can sell, alienate, or create third-party rights over RCom’s assets.
The asset sale agreements, signed on December 28, 2017 and August 11, 2018, were supposed to reduce RCom’s debt but regulatory and legal hurdles delayed the completion of the deal.
The transactions were called off due to non-receipt of consent and no-objection certificates from RCom’s foreign and Indian lenders, who number over 40. This was despite over 45 meetings and the passage of over 15 months, RCom said in a regulatory filing.
–IANS
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