# In the matter of Reliance Telecom Limited

> NCLT judgment dated 2023-11-01. Citation: TCN-2023-NCLT-00907. Indus Towers Limited filed an application (IA 1909/2020) seeking directions against the…

- **Court:** NCLT
- **Order date:** 1 Nov 2023
- **Citation:** TCN-2023-NCLT-00907
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/reliance-telecom-limited-734c8e1b

## Summary

### Background

Indus Towers Limited filed an application (IA 1909/2020) seeking directions against the Resolution Professional, Anish Niranjan Nanavaty, in the Corporate Insolvency Resolution Process (CIRP) of Reliance Telecom Ltd. (Corporate Debtor). Indus Towers sought admission of its entire claim of Rs. 462,35,32,818/-, rejection of the resolution plan, and direction to the Resolution Professional to take over the equipment at the sites owned by Indus Towers. Indus Towers provides passive infrastructure to telecommunication operators, including Reliance Telecom, under a Master Service Agreement (MSA). Disputes arose due to non-payment of dues by Reliance Telecom, leading Indus Towers to invoke arbitration. The arbitration was suspended due to the initiation of CIRP against

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## Facts

Indus Towers Limited provided passive infrastructure services to Reliance Telecom Ltd. (RTL) and Reliance Communications Ltd. (RCOM) under a Master Service Agreement (MSA) executed on 2010-05-31. Indus Towers rendered services at 729 sites in West Bengal. Reliance Telecom failed to make timely payments for invoices, leading to significant outstanding dues. Reliance Telecom voluntarily exited from 335 sites without paying the exit amounts. Indus Towers invoked arbitration to recover outstanding dues, including unpaid invoices, exit amounts, and reduction in loading charges. The arbitration was later suspended due to the initiation of CIRP against Reliance Telecom. Indus Towers filed a claim of Rs. 75,79,68,494/- as an operational creditor, including outstanding

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## Issues and analysis

### Issue 1: Whether the word “Charges” stated in the …

**Ratio:** The legal principle applied is the interpretation of contractual clauses, specifically

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**Reasoning:** The NCLT reasoned that while Clause 7.3.1 mandates payment of interest on unpaid

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**Interpretation:** The interpretation hinges on whether the term 'Charges' in Clause 7.3.1

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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## Parties

- **Judges:** Prabhat…; V.G. B…
- **Appellants:** Indus Towers…
- **Respondents:** Reliance Telecom…
- **Advocates:** Santosh M…

## Timeline

- **2010-05-31 — MSA Exec…**: Indus Towers Limited executed a Master Service Agreement (MSA) with Reliance…
- **2020-10-20 — Application…**: Indus Towers Limited filed Application IA 1909/2020 seeking directions against the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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