A two-judge Bench of Justice Rohinton Fali Nariman and Justice Vineet Saran held that the three Reliance group companies
had “no intention, at the very least, of adhering to the time limit of 120 days or to the extended time limit of 60 days plus, as was given by way of indulgence.”
Ericsson India had in September 2017 moved insolvency petitions against RCom, Reliance Telecom, and Reliance Infratel at the Mumbai Bench of the NCLT
for failing to pay their dues amounting to nearly Rs 1,500 crore. The petition was admitted by the NCLT
in May 2018, following which the three Reliance group companies
approached the NCLAT.
It was in the NCLAT
that Ericsson India and the three Reliance companies
had come to a settlement that the latter would pay Rs 550 crore within 120 days, which was September 30, 2018.
The NCLAT had in its order noted that if RCom
and its two subsidiaries failed to pay the said amount within the timeline, Ericsson India would be at liberty to revive the insolvency application.