Technoglitch
Core Member
Japanese firm NTT DoCoMo on Tuesday said the London arbitration court had found Tata Sons in breach of contractual obligations, and India, being a signatory to the New York Convention, is bound to enforce the $1.17 billion compensation award decision.
“The LCIA (London Court of International Arbitration) tribunal found that Tata Sons had breached its contractual obligations, which were legally capable of performance in ways that did not require permission from the RBI or ministry of finance,” the Japanese telecom giant said in a statement.
The London-based tribunal last month ordered Tata Sons to pay DoCoMo $1.17 billion in compensation for breaching an agreement on India joint venture. The statement comes at a time when the finance ministry has rejected RBI plea for exempting Tata-DoCoMo deal from the foreign exchange Act.
The ministry has taken the position that the two firms had entered into a share buyback contract in contravention of prevalent law and the case will now have to be legally settled. DoCoMo, however, argued that “awards made in England by LCIA tribunals are recognised under the New York Convention, to which India was one of the original signatories on the 10th June 1958.” Hence, as a signatory to the New York Convention, “India is bound to enforce the award decision of the LCIA tribunal for Tata to pay $1.17 billion to DoCoMo”, it said.
Also, the Japanese company said it was not aware of any recent decision from the ministry of finance on this matter since the award was issued by a tribunal of LCIA in favour of DoCoMo on 22 June, 2016.
India bound to enforce London court’s decision on Tata: DoCoMo - Livemint
“The LCIA (London Court of International Arbitration) tribunal found that Tata Sons had breached its contractual obligations, which were legally capable of performance in ways that did not require permission from the RBI or ministry of finance,” the Japanese telecom giant said in a statement.
The London-based tribunal last month ordered Tata Sons to pay DoCoMo $1.17 billion in compensation for breaching an agreement on India joint venture. The statement comes at a time when the finance ministry has rejected RBI plea for exempting Tata-DoCoMo deal from the foreign exchange Act.
The ministry has taken the position that the two firms had entered into a share buyback contract in contravention of prevalent law and the case will now have to be legally settled. DoCoMo, however, argued that “awards made in England by LCIA tribunals are recognised under the New York Convention, to which India was one of the original signatories on the 10th June 1958.” Hence, as a signatory to the New York Convention, “India is bound to enforce the award decision of the LCIA tribunal for Tata to pay $1.17 billion to DoCoMo”, it said.
Also, the Japanese company said it was not aware of any recent decision from the ministry of finance on this matter since the award was issued by a tribunal of LCIA in favour of DoCoMo on 22 June, 2016.
India bound to enforce London court’s decision on Tata: DoCoMo - Livemint