Tata Sons today said it has transfered USD 1.17 billion, equal to the compensation awarded to its estranged partner DoCoMo of Japan, into a fixed depsoit in name of Delhi High Court Registrar.
The High Court, it said, has given the two partners time till August 30 to try and resolve the outstanding issues.
“With reference to the recent London Court of International Arbitration’s arbitral award, Tata Sons confirms that the full amount, USD 1.17 billion, has today been transferred into fixed deposits favouring the Court Registrar, New Delhi without prejudice to its legal rights,” Tata Sons said in a statement.
Tata Sons was last month ordered to pay DoCoMo USD 1.17 billion in compensation for breaching an agreement on India joint venture.
However, the Indian partner cited Reserve Bank of India (RBI) not granting an exemption to the foreign exchange act to pay the money.
In the meanwhile, NTT Docomo got an ex parte order from the Commercial Court in London seeking permission to enforce the arbitration award in the UK. It essentially meant seizing Tata’s Britain assets to recover the money.
Tata Sons yesterday said it has 23 days from July 27 to apply for the order to be set aside.
The Japanese firm has also filed a plea in the Delhi High Court seeking enforcement of the arbitration ruling.
The High Court in Delhi has given time till August 30, 2016, for both parties to try and resolve the outstanding issues between them, Tata Sons statement said.
“Tata Sons wishes to clarify that it has in the past, as well as after the arbitral tribunal announced its award, invited Docomo to join it in representing this matter before the Reserve Bank of India (RBI) and the Ministry of Finance.
“In the meantime, we would caution against any stakeholders being misled by statements that are made in ignorance of India’s foreign exchange regulations,” it added.
The statement came shortly after Japan’s largest mobile phone firm NTT DoCoMo accused Tatas of not willing to pay the arbitration award and make RBI permission an “excuse.”
The arbitral award is the result of a two-year tussle between the partners in their failed joint venture Tata Teleservices in which NTT Docomo of Japan holds 26 per cent stake which it had picked up in November 2008 for USD 2.7 billion or about Rs 12,770 crore at the then exchange rate.