RCom faces $1.2m bankruptcy suit from Tech Mahindra

By:
Alan Burkitt-Gray
Published on:

Tech Mahindra follows Ericsson in suing Reliance Communications in Mumbai business court

Tech Mahindra has become the second company to sue Reliance Communications in the Indian bankruptcy court.

The services company has filed three cases against RCom and subsidiaries, claiming that RCom owes a total of 81 million rupees ($1.2 million).

Last month the Indian operation of Ericsson sued RCom and some of its subsidiaries in the National Company Law Tribunal (NCLT), claiming non-payment of the equivalent of $180 million.

Tech Mahindra named RCom plus Reliance Telecom and Reliance Big TV in its suit to the NCLT under the insolvency and bankruptcy code, said Indian newspaper Livemint this morning. The paper said the petitions are due to be heard on Monday.

The paper quoted “a person with direct knowledge of the matter on condition of anonymity” telling it: “Tech Mahindra has filed these cases in its capacity as the operational creditor of RCom and its subsidiaries. The liabilities mentioned in the petition arise out of the service agreements between Tech Mahindra and the Reliance firms involved.”

In September RCom said it intended to challenge Ericsson petitions, but has not so far commented on the Tech Mahindra action.

RCom’s planned merger with Aircom, intended to reduce its debt pile, was cancelled last weekend. It is still planning to sell its Reliance Infratel tower company, and is understood to be offering 100% instead of the previously stated 51%.