The lenders denied releasing RCom’s Rs. 266 crore value of income tax return that Rcom is looking to pay the Swedish telecom equipment maker, as NCLAT ordered that Rcom should pay Ericson on its own without heaping its past liabilities on lenders. Senior counsel Neeral Kishen Kaul, from SBI, asserted the money didn’t belong to RCom. “ RCom should pay Ericson, but not at our cost,” Kaul said.
To an NCLAT two-member bench led by justice SJ Mukhopadhyay, Kaul told, “An ‘errant’ firm is wanting public money from the Retention and Trust Account formed in 2017, that is prior to initiation of any IBC proceedings against it, to clear its debts. No encumbrances can be created on the tax refund of `260 crores received in this account on which only the lenders have a lien. You gave undertaking to the SC and NCLAT.”
Neeraj Kaul also told the Supreme court that Reliance firms are guilty of contempt for not paying  Rs. 550 crore to plus internet and have also breached the undertakings given to the apex court as well to the tribunal.
The plea against Rcom can’t commence unless RCom settles the Ericson debt to finality, observed by NCLAT.“The entire due amount has to be paid with full interest. We are aware that RCom wilfully defied undertakings and went against the SC orders, ” the bench said.
Read EquityPandit’s SBI Outlook for the Week