Ericsson Adds Khambata In Fight Against RCom – ZMR Blog
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Ericsson Adds Khambata In Fight Against RCom

Ericsson Adds Khambata In Fight Against RCom

Ericsson, the Equipment maker, has incorporated Darius Khambata, the senior counsel, to represent it in its bankruptcy petition in opposition to RCom (Reliance Communication) at the NCLT (National Company Law Tribunal).

Khambata is also standing for CDB (China Development Bank) in its bankruptcy appeal in opposition to the Anil Ambani controlled firm to recuperate dues valued at $1.78 Billion (almost Rs 11,460 Crore). The Bombay HC lawyer claimed that there was no intention at the moment to combine the cases, but that might ultimately take place once any of the bankruptcy appeals was acknowledged.

The approval of bankruptcy will also succeed the tactical liability restructuring being executed by domestic lenders of RCom, he claimed. The bankruptcy appeals in opposition to RCom and its arms will be heard on December 18, 2017, by NCLT. This week, counsel of RCom claimed the NCLT panel represented by Justices V Nallasenapathy and BSV Prakash Kumar that the firm had filed an official declaration contending the certificates of the bank filed by Ericsson were not in agreement with the rules of the court.

The Swedish company had filed certificates of the bank from Citibank and HDFC Bank on November 16, 0217, claiming the firm did not get any amount from the Ambani-controlled firm. A bank certificate points to a paper released by an Indian bank displaying a default in transaction since money has not arrived into an account.

As per sources, the affidavit of the RCom claimed that the certificates of the bank were rolled out based on of certificates offered by chartered accountants, which is not allowable. The provided claimed that the certificates record the time frame from April 2017 and do not mirror transaction details prior to March 2017. The 3rd point in the official declaration, as per sources, was that Ericsson did not file the letter it had conveyed to the banks with the court. RCom did not answer to an email conveyed by the media.

Ericsson had previously claimed to the court that RCom had not given its dues for last 2 Years and only a couple of postdated cheques had been provided. In September, it filed for bankruptcy in NCLT to recuperate Rs 1,150 Crore from the provider for equipment and services supplied. Discussions between the 2 to get to an out-of-court agreement have been unsuccessful so far. RCom, below a liability pile of Rs 45,000 Crore, has 5 bankruptcy petitions filed in opposition to it.

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