The National Company Law Appellate Tribunal (“NCLAT”) grants stay on corporate insolvency resolution process of Reliance Communications Limited
Posted On : June 01, 2018
The Mumbai bench of the National Company Law Tribunal, on May 15, 2018, admitted three petitions filed against Reliance Communications Limited (“RCOM”), Reliance Infratel Limited (“RITL”) and Reliance Telecom Limited (“RTL”) by Ericsson under the Insolvency and Bankruptcy Code.
RCOM, RITL and RTL had filed an appeal against the above mentioned order of the National Company Law Tribunal admitting Ericsson’s plea, initiating the corporate insolvency resolution process and appointing the interim resolution professionals, before the NCLAT. On the hearing of this appeal, on May 30, 2018, the NCLAT has stayed the corporate insolvency resolution process of RCOM, RITL and RTL.
The NCLAT has also permitted RCOM to pay Rs. 550 Crores to Ericsson to settle a payment dispute, within a period of 120 days from June 01, 2018, failing which the corporate insolvency resolution process against RCOM, RITL and RTL shall be resumed.