Setback for Ericsson as NCLAT lets RCom withdraw plea against insolvency

The National Company Law Appellate Tribunal (NCLAT) on Tuesday allowed debt-ridden Reliance Communications (RCom) to withdraw its petition challenging the National Company Law Tribunal (NCLT) Mumbai’s decision to initiate insolvency against it.

RCom moved the application to withdraw its plea after the company board on February 1 decided that it would file for insolvency as all attempts to revive it had been unsuccessful.

The board noted that despite so much time being spent, the lenders had received no proceeds from the proposed asset monetisation.

With the NCLAT allowing the withdrawal, the insolvency proceedings against RCom will restart in NCLT Mumbai. 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 dues amounting to nearly Rs 1,500 crore. The plea was admitted on May 15, 2018.