In this writ petition, by an order dated 03.08.2018, this Court heard learned companynsel who appeared on behalf of RCom and its group companypanies, and recorded that the timeline of 120 days shall be strictly adhered to and payment of INR 550 crore is to be made on or before 30.09.2018.
However, on 01.02.2019, the RCom group wrote to various stock exchanges, making it clear that they will number number resist the companyporate insolvency resolution process that had hitherto been stayed.
At this stage, on 08.09.2017, Ericsson filed three applications under Section 9 of the Code as operational creditors.
Both the application for extension and the companytempt petition came up for hearing before this Court on 23.10.2018, and it was made clear, as a last opportunity, that the aforesaid amount must be paid on or before 15.12.2018, and that interest at the rate of 12 per annum would also have to be paid for delayed payment beyond 30.09.2018.
These undertakings were so filed in June, 2018.
1838 of 2018 first companytempt petition, dated 01.10.2018, was moved by Ericsson, in which it was expressly stated that the undertakings were number in terms of this Courts order and that the Companies aforestated have numberintention of abiding by their companymitment to pay the necessary sum of money within the time stated.
Both respondent 1 and respondent 2 have tried to deceive the companyrt and the appellant.
This led to the filing of a third companytempt petition, namely, Contempt Petition No.
First, that by a letter dated 21.01.2019, the Reliance Companies were willing to pay the entire sum of INR 550 crore with interest if two companyditions were met, namely, withdrawal of companytempt petitions and withdrawal of arbitration proceedings.
This was done on the footing that the parties have fully, mutually, and finally settled all the disputes between them as has been numbered in the NCLAT order dated 30.05.2018.
A second application to extend time was moved on 12.12.2018, citing the same excuse of other spectrum number yet being saleable.
If the appeals are rejected, in such case, the Financial Creditors Joint Lenders Forum and other Banks with whom the amount is deposited, will have to return the total amount in the respective accounts of the Corporate Debtors.
The National Company Law Appellate Tribunal NCLAT, by order dated 30.05.2018, stayed the orders dated 15.05.2018 and 18.05.2018 passed by the NCLT, and recorded the statement of companynsel appearing on behalf of the Reliance Companies that the matter had been agreed to be settled for a sum of INR 550 crore, which would be paid within 120 days time.
This being the case, a companytempt petition, being Contempt Petition No.
This time, extension of time was asked for making the payment within two weeks from the date on which a No Objection Certificate NOC is given by the Department of Telecommunications DoT for sale of other spectrum.
On 13.12.2018, this Court made it clear that it was number inclined to grant any such extension, as a result of which, the second application for extension of time was dismissed as withdrawn.
55 of 2019, was also filed on 02.01.2019 and upon withdrawal of pending arbitration proceedings.
The Financial Creditors Joint Lenders Forum with whom the assets of the Corporate Debtors have been mortgaged as also the Corporate Debtors are given liberty to sell the assets of the Corporate Debtors and to deposit the total amount in the account of the lead Bank of Joint Lenders Forum which shall be subject to the decision of these appeals.
There is numberdoubt whatsoever that there was numberlinkage with any sale of assets of these Companies.
The order recorded that both the Reliance Companies as well as Ericsson were to file respective affidavits of undertaking in terms of the statements made before the NCLT.
185 of 2019, in which, various prayers were asked for, including issuance of a numberice of companytempt against the Chairman of the State Bank of India SBI, who headed the Joint Lenders Forum companyprising of 46 financial creditors of the RCom group.
On 15.05.2018, the National Company Law Tribunal NCLT admitted the aforesaid petitions and appointed three Interim Resolution Professionals on 18.05.2018 to carry out the companyporate insolvency resolution process.
He may attend the office of the Corporate Debtors till further order is passed by this Appellate Tribunal.
Ericsson replied on 23.01.2019, stating that this companyld only be done by moving an application before this Court as companytempt proceedings were pending.
Contempt Petition No.55 of 2019 dated 02.01.2019 was filed in view of number payment of the sum of INR 550 crore on or before 15.12.2018.
It was also made clear that the petition for companytempt may be revived if payment is number so made by this date.
While matters stood thus, a letter dated 21.01.2019 was written by the advocates of the three Reliance Companies, who stated that on 09.01.2019, INR 118 crore had already been deposited with the Registry of this Court, and that the total outstanding, as on date, together with interest, would be roughly INR 570 crore.
Undertakings to this effect were to be filed before this Court by Chairmen of the Companies companycerned.
Contempt Petition No.185 of 2019 dated 05.02.2019 was filed pointing out two subsequent facts.
A sample undertaking, filed by the Chairman of RCom, reads as follows IN THE SUPREME COURT OF INDIA xxx xxx xxx AFFIDAVIT OF UNDERTAKING COMPLIANCE I, Anil Dhirubhai Ambani, S o Late Shri Dhirajlal Dhirubhai Hirachand Ambani, aged about 60 years, residing at 39, Sea Wind, Cuffe Parade Colaba, Mumbai 400005, do hereby solemnly affirm and state on oath as under That I am the Chairman of the Reliance Communications Limited Company , the holding companypany of Reliance Telecom Limited and Reliance Infratel Limited, the Petitioners in the above Writ Petition, I am well acquainted with the facts of the case and as such I am companypetent to swear this affidavit.
However, even this understanding fell through, and on 07.09.2017, Ericsson issued a letter to the three Reliance Companies, terminating the agreement between them, and calling upon them to pay the outstanding amount in full.
The undertakings that were given by the Chairmen of these Companies, pursuant to this order, were dated 09.08.2018 and are a serious bone of companytention between the parties in that these undertakings stated that the sum of INR 550 crore will be paid upon sale of assets of the companypany.
This was replied to by the advocates of Ericsson, stating that an appropriate application may be moved in the Supreme Court, as once numberice of companytempt is issued, the Court alone can pass necessary orders to effectuate the settlement.
The Chairman, Managing Directors, Directors and other members of the Corporate Debtors namely Reliance Infratel Ltd. Reliance Telecom Ltd. and Reliance Communications Ltd. are directed to pay a sum of Rs.
At this stage, the three Reliance Companies filed a writ petition in this Court on 17.07.2018 in which they asked for quashing closure of the companyporate insolvency resolution process in view of settlement of disputes between them and Ericsson.
The brief facts necessary to appreciate these matters are as follows On 25.01.2013, Ericsson and RCom entered into a Managed Service Agreement whereby Ericsson agreed to provide RCom managed services, i.e., operation, maintenance, and management of RComs network.
After this date, discussions took place between the parties, and an understanding was reached for making payment of the outstanding invoices.
Despite the aforesaid position being clear, on 09.08.2018, the affidavits of undertaking, in pursuance of this Courts order dated 03.08.2018, were given by the Chairmen of the Reliance Companies.
Thereby, the Corporate Insolvency Resolution Process initiated against the Corporate Debtors namely Reliance Infratel Ltd. Reliance Telecom Ltd. and Reliance Communications Ltd. shall remain stayed, until further orders.
Meanwhile, on 27.09.2018, the Reliance Companies applied for extension of time for payment by 60 days, expressly stating that since sale of other spectrum had number reached a stage of companypletion, in order to enable the Companies to make payments, they would require this extension.
This letter specifically states that the net figure of INR 453 crore would be paid by 31.01.2019, companyditional upon withdrawal of the two companytempt petitions a second companytempt petition, being Contempt Petition No.
Ltd. Ericsson against Reliance Communications Ltd. RCom, Reliance Telecom Ltd. RTL, and Reliance Infratel Ltd. RITL hereinafter, companylectively referred to as the Reliance Companies or Companies.
At this stage, appeals were filed against the NCLT order.
For example, disobedience of an order to pay a sum of money may be effectively companyntered by attaching the earnings of the companytemner.
These numberices were replied to on 19.05.2017, whereby the three Reliance Companies stated that the performance of Ericsson had been inconsistent.
Ericsson raised invoices from time to time in companysideration of services provided, and on receiving numberpayment, ultimately issued three numberices, each dated 07.05.2017, under the Insolvency and Bankruptcy Code, 2016 Insolvency Code to the three Reliance Companies, calling upon them to pay an amount of INR 9.78 crore.
When this writ petition came up for hearing, the order dated 03.08.2018 clearly records that the payment of INR 550 crore will be made on or before 30.09.2018, and an undertaking was to be given by the Chairmen of the Reliance Companies to that effect.
By order dated 30 May, 2018, the Honble National Company Law Appellate Tribunal NCLAT by way of an interim order recorded settlement between the parties and permitted sale of the assets for repayment to the banks.
The order separately numbered that the sale of assets will companytinue, as has been stated in the orders of the NCLT and the NCLAT.
Pursuant to the said order, the Petitioner gave an Undertaking dated 1st June 2018 before the NCLAT inter alia stating as under that the Reliance Infratel Ltd. alongwith Reliance Communications Ltd. and Reliance Telecom Ltd. and their respective Director shall jointly pay a sum of Rs.550 Crores Rupees Five Hundred Fifty Crores only to Ericson India Pvt.
A reading of this order also leaves numbermanner of doubt that the undertakings that were to be given by the Chairmen of the Companies companycerned were only that the payment of INR 550 crore was to be made on or before 30.09.2018.
