comscore HC dismisses RBI's plea in Tata-Docomo arbitral award case
News

HC dismisses RBI's plea in Tata-Docomo arbitral award case

Tata Sons Ltd and NTT Docomo Inc. had filed a enforcement of a $1.17 billion arbitration award.

  • Published: April 30, 2017 10:00 AM IST
tata-docomo-logo

The Delhi High Court today rejected the RBI s intervention plea in the Tata-DoCoMo case while taking on record the terms of consent to the settlement between Japanese telecom major NTT DoCoMo and Tata Sons over the payment of $1.17 billion damages to the former. Justice S Muralidhar in his verdict rejected the Reserve Bank of India s intervention plea opposing the settlement as well as the damages awarded to Docomo by the London Court of International Arbitration (LCIA). Also Read - WhatsApp not authorized to go live with UPI full scale operations, RBI tells Supreme Court

Also Read - Cryptocurrency ban lifted in India; Here is everything that we know

Also Read - RBI cancels Vodafone m-pesa's certificate of authorization

The court said it has given detailed directions in its judgment and disposed of the plea by DoCoMo seeking enforcement of the LCIA award. The court had reserved its verdict on March 15. DoCoMo and Tata had gone for arbitration as the Indian company was not able to find a buyer for the Japanese telecom major s 26.5 percent stake in their joint venture, Tata Teleservices Ltd (TTSL), when it exited from it.

Under the shareholding agreement between them, on DoCoMo s exit from the venture within five years, Tata was to find a buyer who would purchase the Japanese company s stake at minimum 50 percent of the acquisition price, which came to around Rs 58.45 per share.

The other option was Tata purchasing the shares at the fair market value, which was Rs 23.44. However, this was not acceptable to DoCoMo and it had opted for arbitration. Thereafter, the LCIA in June 2016 awarded damages of $1.17 billion in favour of DoCoMo for Tata s inability to find a buyer as per the shareholding agreement. ALOS READ: Apple, Cisco, IBM owe their success to world-wide talent sourcing: RBI chief

DoCoMo had moved the Delhi High Court for enforcement of the award after Tata cited refusal of permission by the RBI to make the payment. The RBI, during the proceedings, had contended that once it had denied permission for transferring the money overseas, the issue had attained finality.

It had said that till date, its decision has not been challenged. The RBI, in its intervention application, had contended that the shareholding agreement was illegal and objected to the award of damages. It had said that Docomo s shares in TTSL be purchased only at the fair market value. The Indian central bank had later also opposed the settlement arrived at between Tata and DoCoMo. Under the settlement agreement between the two companies, Tata and DoCoMo had decided to settle their two-year-old dispute regarding TTSL with the Indian company withdrawing its objections to the enforcement of the award.

Tata had already deposited $1.17 billion with the high court. The Japanese company, in turn, had said it will suspend its related enforcement proceedings in the United Kingdom and the United States for a period of six months.

For the latest tech news across the world, latest PC and Mobile games, tips & tricks, top-notch gadget reviews of most exciting releases follow BGR India’s Facebook, Twitter, subscribe our YouTube Channel.
  • Published Date: April 30, 2017 10:00 AM IST



new arrivals in india

OnePlus 8T
OnePlus 8T

42,999

Samsung Galaxy F41
Samsung Galaxy F41

15,499

Apple iPhone 12 Pro Max
Apple iPhone 12 Pro Max

1,29,900

Apple iPhone 12 Pro
Apple iPhone 12 Pro

1,19,900

Apple iPhone 12 Mini
Apple iPhone 12 Mini

69,900

Apple iPhone 12
Apple iPhone 12

79,900

Poco X3
Poco X3

16,999

Realme Narzo 20A
Realme Narzo 20A

8,499

Realme Narzo 20
Realme Narzo 20

10,499

Realme Narzo 20 Pro
Realme Narzo 20 Pro

14,999

Oppo F17
Oppo F17

17,990

Samsung Galaxy M51
Samsung Galaxy M51

24,999

Poco M2
Poco M2

10,999

Oppo F17 Pro
Oppo F17 Pro

22,990

Realme 7 Pro
Realme 7 Pro

19,999

Realme 7
Realme 7

14,999

Xiaomi Redmi 9A
Xiaomi Redmi 9A

6,799

Vivo Y20
Vivo Y20

12,990

Xiaomi Redmi 9
Xiaomi Redmi 9

8,999

Nokia 5.3
Nokia 5.3

13,999

Motorola Moto G9
Motorola Moto G9

11,499

Realme C15
Realme C15

9,999

Realme C12
Realme C12

8,999

Samsung Galaxy Note 20
Samsung Galaxy Note 20

77,999

Xiaomi Redmi 9 Prime
Xiaomi Redmi 9 Prime

9,999

Oppo Reno4 Pro
Oppo Reno4 Pro

34,990

Samsung Galaxy M01 Core
Samsung Galaxy M01 Core

5,499

Realme 6i
Realme 6i

12,999

Asus Rog Phone 3
Asus Rog Phone 3

49,999

OnePlus Nord
OnePlus Nord

24,999

Infinix Smart 4 Plus
Infinix Smart 4 Plus

7,999

Xiaomi Redmi Note 9
Xiaomi Redmi Note 9

11,999

Samsung Galaxy M01s
Samsung Galaxy M01s

9,999

Vivo X50 Pro 5G
Vivo X50 Pro 5G

49,990

Vivo X50 5G
Vivo X50 5G

34,990

Realme C11
Realme C11

7,499

Poco M2 Pro
Poco M2 Pro

13,999

Realme X3
Realme X3

24,999

Realme X3 SuperZoom
Realme X3 SuperZoom

27,999

Tecno Spark Power 2
Tecno Spark Power 2

9,999

Oppo A12
Oppo A12

9,990

Oppo A52
Oppo A52

16,990

Samsung Galaxy A21s
Samsung Galaxy A21s

15,999

Oppo Find X2
Oppo Find X2

64,990

Motorola One Fusion Plus
Motorola One Fusion Plus

17,499

Samsung Galaxy A31
Samsung Galaxy A31

20,999

Samsung Galaxy M01
Samsung Galaxy M01

8,999

Samsung Galaxy M11
Samsung Galaxy M11

10,999

Infinix Hot 9 Pro
Infinix Hot 9 Pro

9,999

LG Velvet
LG Velvet

Price Not Available

Xiaomi Mi Note 10 Lite
Xiaomi Mi Note 10 Lite

Price Not Available

Apple iPhone SE 2020
Apple iPhone SE 2020

42,500

Honor 30 Pro
Honor 30 Pro

Price Not Available

Honor 30
Honor 30

Price Not Available

OnePlus 8
OnePlus 8

44,999

OnePlus 8 Pro
OnePlus 8 Pro

54,999

Xiaomi Redmi Note 9 Pro
Xiaomi Redmi Note 9 Pro

13,999

Motorola Moto E4
Motorola Moto E4

8,999

Samsung Galaxy On Max
Samsung Galaxy On Max

9,775

nubia N2
nubia N2

15,999

Karbonn K9 Kavach 4G
Karbonn K9 Kavach 4G

5,290

Motorola Moto C Plus
Motorola Moto C Plus

6,999

Best Sellers