Accusing the Tata Group of not willing to pay $1.17 billion loss, the largest Japanese mobile phone company NTT DoCoMo said RBI disallowing its “mischaracterised” application does not bar a group of Indian group from paying of money or assets outside the country.
Tata Sons last month was ordered to pay $1.17 billion to DoCoMo as compensation for breach of contract of the joint venture in India. DoCoMo said in a statement, Tata Sons was referring to the Reserve Bank of India (RBI) not to grant exemption to the law on foreign exchange to pay money as an “justification”.
“By definition, this decision only applies to pay hard currency of India. It can not be used to block the payment of money or assets of Tata outside India” said a Japanese company.
Keen, to get $1.17 billion quickly, NTT DoCoMo got ex parte order in the Commercial Court in London seeking permission to enforce the award in the UK.
This essentially means seizing the assets of Tata in UK to recover the money. Tata Sons said yesterday that it has 23 days from July 27 to apply for the order to be set aside.
The Japanese company also filed an pleTataa to the Delhi High Court for enforcement of the arbitration ruling.