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An Uneventful Ides of March in the Tata- DoCoMo Row.

The Delhi High Court by reserving its order in the NTT DoCoMo plea of enforcement of its $1.18 billion arbitration award against Tata sons, made the Ides of March this year extremely uneventful.
The London Court of International Arbitration (LCIA) on 24th June last year passed an award in favor of NTT DoCoMo, whereby Tata Sons were to pay $1.18 billion as damages for breach of contract in their joint venture with Tata Teleservices. In 2009, Japanese entity NTT DoCoMo acquired a 20 % stake in Tata Teleservices Ltd. As according to the agreement between the two, in a scenario that DoCoMo exercise the sale option to exit this Tata Teleservices investment, Tata Communications Ltd and Tata Power Company Ltd. would acquire the shares of NTT in the same proportions as were held by NTT. Tata Sons agreed to buy NTT’s stakes in the failed Joint Venture, in the month of June 2014, and sought permission from the RBI for the same. However, RBI entered the dispute as Third Party in October 2016, on the grounds that such buy out of NTT violates the foreign direct investment rules.
On 14th March 2017 the Delhi High Court rejected the RBI’s plea to re examine the matter afresh. The Court directed the RBI, to state their locus standi in objecting the enforcement of an arbitral award where both the parties are have mutually accepted the same. The RBI has stated that such a buy back would be a violation of the public policy.
However, on 15th the High Court reserved its order on the matter and has brought it to a standstill temporarily.

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