Tata Sons Moves Delhi High Court Challenging International Arbitral Award In Favour Of Docomo

Tata Sons filed an affidavit in the Delhi High Court to resist enforcement of the award of the London Court of International Arbitration to NTT Docomo, an official close to Tata Sons said.

In July 2016, Docomo had filed a petition in the Delhi High Court seeking to ensure that Tata Sons honours the arbitral award. Tata Sons deposited Rs 8,400 crore as fixed deposit receipts, pending a final decision by the court. The amount continues to remain with the high court, which will take the final decision in due course on how it will be dealt with, the official mentioned above said.

Tata Sons has been seeking Docomo’s cooperation in making appropriate representation with the government and the regulator in order to arrive at a solution within the framework of the Indian law, but such cooperation may not be forthcoming, the official added.

Tata Sons had earlier informed the Delhi High Court that the Reserve Bank of India has twice turned down its application to remit the full amount to Docomo in lieu of the transfer of Tata Teleservices shares to Tata Sons.

Another official close to Tata Sons said the regulator has expressed concerns with the negative press which Docomo has been instigating against Indian law and policy.

According to the information shared by the officials, the Tata Sons’ affidavit demonstrates that Docomo was fully aware of all regulatory implications underlying any transfer of shares in the joint venture with Tatas at the time of signing the shareholder agreement, including the implication of RBI’s pricing guidelines governing such transactions. Tata’s affidavit highlights that enforcement of the arbitral award would contravene Indian public policy and the fundamental policy of Indian law.

Tata Sons expects its affidavit to have a significant impact on the legal proceedings both in India and outside the country, one of the officials said. He added that the the company hopes a successful outcome in the Delhi High Court will impact Docomo’s ability to seek enforcement of the arbitral award in other jurisdictions as it has already attempted to do in London.

“The fact that Tata has raised objections to the enforcement of the London Court of Arbitration (LCIA) award directly contradicts its statements of intent to meet its payment obligations. The award by the LCIA is internationally recognised, including by India, and there is no reason to delay,” Docomo said in a statement.

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