Friday, March 14, 2025
Google search engine
HomeMarketTata and Docomo agree to settle dispute

Tata and Docomo agree to settle dispute

Tata Sons and NTT Docomo filed a joint petition in the Delhi High Court today saying they have agreed to settle the dispute.

After hearing both parties on the joint application, Justice S Muralidhar has adjourned the matter to March 8. Law firm Khaitan & Co is advising NTT Docomo in the case, while the Tata Group is being advised by AZB & Partners.

The Japanese telecom major has been fighting with Tata Sons over the right to sell its stake in their Indian wireless venture Tata Teleservices for at least 50 percent of the original investment since 2014, when it decided to exit the JV.

In 2009, DoCoMo had bought a 26% stake in Tata Teleservices for Rs 13,300 crore. Both parties had agreed that the Japanese company could sell its shares if the Indian partner failed to achieve the performance targets by March 2014. In April 2014, NTT Docomo had decided to sell its entire 26.5% stake in Tata Teleservices and withdraw from mobile telephony in India.

(Image Source: Economic Times)

Under the agreement between Tata and NTT, the latter had the right to request a buyer for its stake at a fair market price or 50% of its acquired price, amounting to Rs7,250 crore, whichever was higher.

However, the RBI, which regulates the trade of put options, rejected the deal, saying the payment would have to be at a fair market value, as per an amendment in the rules in 2013. The then equity value of the JV was significantly below the originally agreed upon price. Since RBI approval was not forthcoming, DoCoMo initiated arbitration.

Docomo had dragged Tata to an international arbitration court in London, which upheld Docomo’s arguments and directed the Tatas to pay $1.17 billion in damages. London tribunal had ordered the promoter of major Tata operating companies to pay $1.17 billion as compensation to NTT Docomo in June for breaching an agreement. Thereafter, Docomo filed an enforcement proceeding before the Delhi high court.

The warring joint venture partners started litigations and other legal manoeuvring after the June 2016 order of the London Court of International Arbitration, which had asked the Tata Group to pay $1.17 billion to NTT Docomo as per the original agreement.

If the two partners part amicably, this will not only be good news for the salt-to-software Tata group but it could also pave the way for further consolidation in India’s telecom industry.

Commerce
Commercehttp://www.commerceduniya.in
If you want to get our updates via Whatsapp broadcast, do let us know your name and qualification through whatsapp @ 7042097499.
RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -
Google search engine

Most Popular

Recent Comments

Aashish Mishra on Job Vacancy
dre on Quiz9 Q2
dre on Quiz9 Q3
Travis on Quiz9 Q1
Travis on Quiz9 Q2
Travis on Quiz9 Q2
Travis on Quiz9 Q3
sanco on GK1 Q1
sanco on GK1 Q4
sanco on GK1 Q6
sanco on GK1 Q8
junior on Quiz8 Q2
junior on Quiz8 Q4
junior on Quiz8 Q5
junior on Quiz8 Q7
junior on Quiz8 Q1
junior on Quiz8 Q3
junior on Quiz8 Q6
junior on Quiz8 Q8
Victor on World5 Q1
Victor on World5 Q7
demo on Book3 Q5
demo on Book3 Q3
demo on Book3 Q6
demo on Book3 Q5
demo on Book3 Q4
demo on Book3 Q2
demo on Book3 Q1
Basil2 on Quiz7 Q6
Basil2 on Quiz7 Q4
Basil2 on Quiz7 Q5
Basil2 on Quiz7 Q5
Basil2 on Quiz7 Q7
Sid on World5 Q1
Sid on World5 Q2
Sid on World5 Q3
Sid on World5 Q4
Sid on World5 Q5
Sid on World5 Q6
Sid on World5 Q7
Sid on World5 Q8
mb14 on GK1 Q7
mb14 on GK1 Q6
mb14 on GK1 Q4
mb14 on GK1 Q5
mb14 on GK1 Q3
mb14 on GK1 Q2
mb14 on GK1 Q1
mb14 on GK1 Q8
sanco on Quiz9 Q3
Michael Martens on Quiz8 Q1
Michael Martens on Quiz8 Q2
Michael Martens on Quiz8 Q4
Michael Martens on Quiz8 Q3
Michael Martens on Quiz8 Q5
Michael Martens on Quiz8 Q8
Nick Votto on World5 Q1
Nick Votto on World5 Q2
Nick Votto on World5 Q3
Nick Votto on World5 Q4
Nick Votto on World5 Q5
Nick Votto on World5 Q6
Nick Votto on World5 Q7
Nick Votto on World5 Q8
hgn on GK1 Q5
hgn on GK1 Q6
hgn on GK1 Q8
Thomas on GK1 Q1
Thomas on GK1 Q2
Thomas on GK1 Q3
Thomas on GK1 Q4
Thomas on GK1 Q5
Thomas on GK1 Q6
Thomas on GK1 Q7
Thomas on GK1 Q8
Brian Allen on GK1 Q3
Brian Allen on GK1 Q2
Brian Allen on GK1 Q2
Brian Allen on GK1 Q1
Brian Allen on Quiz9 Q1
Brian Allen on Quiz9 Q2
Brian Allen on Quiz9 Q3
Helen Carter on Quiz7 Q6
Helen Carter on Quiz7 Q4
Helen Carter on Quiz7 Q5
Helen Carter on Quiz7 Q7
Nancy Evans on Quiz8 Q1
Nancy Evans on Quiz8 Q2
Nancy Evans on Quiz8 Q3
Nancy Evans on Quiz8 Q4
Nancy Evans on Quiz8 Q5
Nancy Evans on Quiz8 Q6
Nancy Evans on Quiz8 Q7
Nancy Evans on Quiz8 Q8
James Smith on World4 Q2
James Smith on World4 Q3
James Smith on World4 Q4
James Smith on World4 Q5
James Smith on World4 Q6
James Smith on World4 Q1
Jeff King on Book3 Q5
Jeff King on Book3 Q4
Jeff King on Book3 Q3
Jeff King on Book3 Q2
Jeff King on Book3 Q1
Linda Walker on Quiz9 Q1
Linda Walker on Quiz9 Q2
Linda Walker on Quiz9 Q3
Linda Walker on World5 Q1
Linda Walker on World5 Q3
Linda Walker on World5 Q2
Linda Walker on World5 Q4
Linda Walker on World5 Q8
Linda Walker on World5 Q7
Linda Walker on World5 Q5
Linda Walker on World5 Q6
Donald Gracia on Quiz7 Q4
Donald Gracia on Quiz7 Q6
Donald Gracia on Quiz7 Q5
Donald Gracia on Quiz7 Q7
Donald Gracia on Quiz7 Q5
Donald Gracia on Quiz7 Q7
Betty Adams on GK1 Q1
Betty Adams on GK1 Q3
Betty Adams on GK1 Q3
Betty Adams on GK1 Q4
Betty Adams on GK1 Q5
Betty Adams on GK1 Q6
Betty Adams on GK1 Q7
Betty Adams on GK1 Q8
Prathibha Prakash on commerceduniya
surya prakash kumawat on Vacancies of CA Articleship in Delhi NCR
i want all ipcc exam paper of last five years on Question paper of Advanced Accounting May 2013 exam of CA IPCC
syed on commerceduniya
sonali navale on commerceduniya
ramesh on commerceduniya
jailaxmi.ece@gmail.com on Contract Law_Answer_Dec 2011
miankshee on commerceduniya
yatish lalwani on dariakoreczak@gmail.com
Parvez Virani on dariakoreczak@gmail.com
Rahul Vats on mabum2@facebook.com
Narendra Boyina on Gimme one more chestnut!
Gayatri Sinha on
cduniya on industrial_training