NCLT rejects INR 3.25-bln claim of RComm, Reliance Telecom vs Ericsson India
This story was originally published at 20:59 IST on 10 December 2025
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NEW DELHI – The Mumbai bench of the National Company Law Tribunal Wednesday rejected pleas by Reliance Communications Ltd. and Reliance Telecom Ltd.'s resolution professional seeking a refund of INR 3.25 billion from Ericsson India Pvt. Ltd. The Anil Ambani led companies had paid this amount to Ericsson India consequential to the purging of contempt of the Supreme Court's order for failing to honour a settlement with the latter company and repeatedly missing court-mandated payment deadlines.
The companies had sought the refund of the amount contending that the payment of money by them to Ericsson India constitutes a preferential transaction under the Insolvency and Bankruptcy Code, 2016. The petitioners said that this payment was made to Ericsson India in terms of the National Company Law Appellate's stay order on insolvency proceedings in 2019, which categorically had contemplated that "If the appeals are dismissed, the 'operational creditor' will pay back the amount to the 'corporate debtor'", accordingly, in terms of that ruling the amount received by Ericsson India from them ought to be refunded.
The tribunal said that the top court in 2019 had asked the companies to make the payment for purging the contempt, and if the same was not made, the chairman of Reliance group had to suffer a three-month imprisonment. This clearly demonstrates that the payment of money to Ericsson was consequential to the purging of contempt of the Supreme Court only and not for the appellate tribunal's stay order, said the tribunal.
In 2018, the tribunal had admitted a petition by Ericsson India to start insolvency proceedings against the two companies and Reliance Infratel Ltd. The National Company Law Appellate Tribunal in an order stayed the insolvency proceedings against the companies, subject to deposit of INR 5.50 billion amount. The appellate tribunal and the Supreme Court had noted that a settlement was reached between the Reliance companies and Ericsson India. However, due to default in payment of settlement amount, a contempt petition was filed in the apex court, which asked the companies to pay INR 5.50 billion to purge themselves of contempt. While Reliance Communications and Reliance Telecom had sought INR 3.25 billion of the INR 5.50 billion from Ericsson India, Reliance Infratel did not file a plea for the remaining amount.
On Wednesday, shares of Reliance Communications ended 1% higher at INR 1.18 on the National Stock Exchange. End
Reported by Surya Tripathi
Edited by Ashish Shirke
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