The National Company Law Appellate Tribunal (NCLAT) has discarded the plea of Reliance Communications (RCom) to release the Rs266cr worth of income-tax returns that the company wants to use to pay Ericsson, the media reports stated.
As per media reports, the tribunal stated that an ‘errant’ firm is wanting public money from the Retention and Trust Account formed in 2017, that is prior to initiation of any IBC proceedings against it, to clear its debts. No encumbrances can be created on the tax refund of Rs260cr received in this account on which only the lenders have a lien.
The decision came after the State Bank of India-led Joint Lenders’ Forum on Tuesday suggested NCLAT that the debt-ridden telecom company should pay Ericsson on its own without saddling its past liabilities on lenders, the media report suggested.
Further, NCLAT, also, stated that the entire due amount has to be paid with full interest. The tribunal is aware that RCom willfully defied undertakings and went against the SC orders, media reports said.
Reliance Communications' share price is currently at Rs5.10, down by Rs0.02 or 0.39%, from its previous close of Rs5.12 on the BSE.
The scrip opened at Rs5.10 and has touched a high and low of Rs5.15 and Rs5.01, respectively. So far, 40,18,576 (NSE+BSE) shares have been traded on the counter. The current market cap of the company is Rs1,415.95cr.
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