Tata-Docomo dispute: Blame game continues.

Saj 007

29 Jan 2015
Reaction score
Tata-Docomo dispute: Blame game continues...

MUMBAI: The gloves were off, now so are the veils between the Tata group and NTT Docomo, which are again on the offensive over a $1.17 billion arbitration award that Japan's largest telecom company has won against the Indian conglomerate.
The matter is currently in the Delhi High Court, where Docomo has filed a petition seeking enforcement of the award.

The Tata Group's position is that it can't pay because of a local law that doesn't allow such payment under the terms of a joint venture agreement the two entered into several years ago.

Both blame each other for the current situation. "We have been disappointed with the lack of cooperation from our partner in arriving at an amicable resolution," a Tata Group spokeswoman said in an emailed statement on Sunday.
On Friday, Docomo said Tata's objections in the Delhi High Court were representative of its intent not to pay the arbitral award.

In November 2009, Docomo bought a 26.5% stake in Tata Teleservices for about Rs 12,740 crore. The two had agreed that in case Docomo exits the venture within five years, it will get a minimum 50% of its investment. But the Reserve Bank of India ruled that the option was not valid and payment would have to be at a fair market value. Later, the RBI consented but sought finance ministry approval for an exception to the rule which was turned down --Tata has cited this for not paying the Japanese partner.
Docomo moved international arbitration in London and won a $1.17 billion award against Tata for breach of contract on grounds that the Indian company neither found a buyer nor bought back the Japanese partner's stake in their joint venture, Tata Teleservices.
"The position Tata Sons has taken in its affidavit filed in the Delhi High Court is in line with what we have stated from the outset-that Tata Sons is committed to honouring our contractual obligations to NTT Docomo, in compliance with Indian regulations and law," the Tata statement said.

On Friday, Tata filed an objection at the Delhi High Court against enforcing the arbitration award, which Docomo had motioned was necessary as India is a signatory to the New York convention under which the arbitration award was given.
"There is a judicial process that is underway and we need to pay due heed to the laws that bind us all. Docomo is unfortunately confusing our intent to pay with what is legally payable by us. Tata's intent is to pay but within the confines of the law." Monday is the deadline to appeal against the enforcement of the award in London.

Tata-Docomo dispute: Blame game continues - Times of India
Tata Docomo should be sold or closed.. :nj
Top Bottom
AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock