Supreme Court Orders Rs. 550 Crore Payment to Ericsson: Strict Timeline and Asset Sale Compliance The Supreme Court directed the debtor to pay Rs. 550 Crores to Ericsson India Pvt. Ltd. within 120 days from the date of the order, emphasizing strict ...
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Supreme Court Orders Rs. 550 Crore Payment to Ericsson: Strict Timeline and Asset Sale Compliance
The Supreme Court directed the debtor to pay Rs. 550 Crores to Ericsson India Pvt. Ltd. within 120 days from the date of the order, emphasizing strict adherence to the payment timeline. The Chairman of the debtor Company must submit an undertaking within one week. All concerned parties agreed to these terms, with the next hearing scheduled for 1st October 2018 to proceed with the asset sale as ordered by the Tribunal and Appellate Tribunal, ensuring diligent compliance with the debt settlement agreement.
Issues: Debt settlement agreement between parties, adherence to payment timeline, undertaking by the Chairman of the Company, agreement by all concerned parties, asset sale confirmation.
The judgment pertains to a debt settlement agreement between parties, specifically involving Ericsson India Pvt. Ltd., an Operational Creditor, and the debtor owing over Rs. 1500 Crores. Ericsson India Pvt. Ltd. has agreed to settle the debt for Rs. 550 Crores to be paid within 120 days from the date of the order, i.e., by 30th September 2018. The Supreme Court, after hearing counsels for various parties, including Neptune Steel Strips Ltd., Reliance Communications Limited, and Joint Lenders Forum/SBI, emphasized strict adherence to the payment timeline and directed the payment of Rs. 550 Crores to be made on or before the specified date.
Furthermore, the Court mandated that the undertaking by the Chairman of the concerned Company must be submitted within one week from the date of the judgment. All parties involved, including the Joint Lenders Forum and Ericsson India Pvt. Ltd., agreed to these terms. The Court scheduled the next hearing for 1st October 2018, indicating that the sale of the assets in question will proceed as per the orders of the Tribunal and Appellate Tribunal. The judgment ensures that the debt settlement agreement is followed diligently, with necessary undertakings and agreements in place to facilitate the timely payment and asset sale as outlined in the previous orders.
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