# In the matter of Reliance Infratel Ltd. C.P. (IB)-1387-(MB)-2017

> NCLT judgment dated 2018-05-17. Citation: TCN-2018-NCLT-01384. Ericsson India Pvt. Ltd. filed three separate Company Petitions (1385/2017, 1386/2017, and…

- **Court:** NCLT
- **Order date:** 17 May 2018
- **Citation:** TCN-2018-NCLT-01384
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/reliance-infratel-ltd-cp-ib-1387-mb-2017-5b34f379

## Summary

### Background

Ericsson India Pvt. Ltd. filed three separate Company Petitions (1385/2017, 1386/2017, and 1387/2017) under Section 9 of the Insolvency & Bankruptcy Code, 2016, against Reliance Infratel Ltd. (RITL), Reliance Telecom Ltd. (RTL), and Reliance Communications Ltd. (RCom), respectively. These petitions were filed due to the failure of the Reliance companies to pay Ericsson for services rendered under a Managed Services Agreement (MSA) dated 25.01.2013. The total outstanding dues as of 31.03.2017 amounted to ₹9,78,72,06,974. Ericsson sought initiation of the Corporate Insolvency Resolution Process (CIRP) against each of the Reliance companies for their respective defaulted amounts: ₹427,21,40,509 against RITL, ₹114,54,46,238 against RTL, and ₹436,96,20,227 against RCom.

## Facts

Ericsson India Pvt. Ltd. provided telecommunications services to Reliance Communications Ltd. (RCom), Reliance Telecom Ltd. (RTL), and Reliance Infratel Ltd. (RITL) under a Managed Services Agreement (MSA) dated 25.01.2013. RCom held 96% shareholding in RITL and 100% shareholding in RTL. As of 31.03.2017, the total outstanding dues from these companies to Ericsson amounted to ₹9,78,72,06,974. The individual amounts were ₹427,21,40,509 from RITL, ₹114,54,46,238 from RTL, and ₹436,96,20,227 from RCom. Reliance repeatedly assured Ericsson of payment, providing various payment schedules and undertakings, but failed to meet its obligations. Reliance sent a letter dated 28.04.2017 confirming the outstanding dues as per their books. Ericsson sent notices under Section 8 of

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## Issues and analysis

### Issue 1: Whether the debt is in …

**Ratio:** The existence of debt is determined by the acknowledgement of the debt by the corporate

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**Reasoning:** Reliance, in its letter dated 28.04.2017, confirmed the outstanding dues as per their

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**Interpretation:** The court interpreted that the absence of any dispute raised by the corporate

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**Application:** Since Reliance admitted the debt and did not raise any dispute regarding the

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## Parties

- **Judges:** B.S.V. Prakash…; RavikumarDu…
- **Appellants:** Ericsson India…
- **Respondents:** Reliance Infratel…

## Timeline

- **2013-01-25 — Managed Services…**: Ericsson and Reliance entered into a…
- **2017-03-31 — Outstandin…**: Total outstanding dues from Reliance to…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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