Reliance Communications moves Bombay HC against interim order barring asset sale

Debt-laden Reliance Communications (RCom) has moved the Bombay High Court challenging an arbitration panel's interim order that restrains the company from selling or transferring assets.

In a regulatory filing, the company said that it "has filed an appeal before the Bombay High Court to protect the interests of secured lenders".

The move comes after an arbitration tribunal, in an interim order, restrained RCom from asset sale, transfer, on an appeal by telecom gear maker Ericsson India.

Ericsson had sought relief from the tribunal over payments that the Anil Ambani-led RCom owes it.

Mukesh Ambani-led Reliance Jio has signed a pact to acquire mobile business assets including spectrum, mobile towers and optical fibre network of RCom-owned by his younger brother Anil Ambani.

While neither Jio nor RCom had divulged the size of the deal, banking sources pegged the transaction value at Rs 24,000- 25,000 crore.

The deal is expected to be completed this month, bringing relief to RCom which is reeling under a debt of over Rs 38,000 crore.

The tribunal said Ericsson has made out an arguable case, and it is of the opinion that the firm will suffer "irretrievable injury" if it is denied any relief.

"Irreparable injury in the opinion of tribunal would mean substantial injury. The applicant cannot be denied a legal remedy that is available under the law," the tribunal order had said.

Ericsson has submitted various claims before tribunal including Rs 1,200 crore admitted by RCom in their correspondence and Rs 1,012 crore dues which RCom allegedly failed to pay despite repeated promises, assurance and undertakings.

Lenders of RCom had invoked "strategic debt restructuring" programme to recover dues from the company.