Anil Ambani Ordered to Pay $71.3 Million in Ericsson Case, Supreme Court Rejects Plea

New Delhi, India - February 24, 2023

The Supreme Court of India has dismissed a plea filed by Anil Ambani, the former chairman of Reliance Communications, seeking a stay on the National Company Law Tribunal's (NCLT) order directing him to pay $71.3 million to Ericsson India. The apex court's decision comes as a setback for Ambani, who had challenged the NCLT's order in the apex court.

Background of the Case:

The dispute between Ericsson India and Reliance Communications dates back to 2014, when Ericsson India filed a petition before the NCLT seeking to recover its dues from Reliance Communications. Ericsson India claimed that Reliance Communications owed it $71.3 million for unpaid invoices related to the supply of equipment and services. In 2018, the NCLT admitted Ericsson India's petition and directed Reliance Communications to pay the outstanding amount. Reliance Communications challenged the NCLT's order before the National Company Law Appellate Tribunal (NCLAT), which upheld the NCLT's decision.

Supreme Court's Decision:

Aggrieved by the NCLAT's order, Anil Ambani approached the Supreme Court, seeking a stay on the NCLT's order. However, the Supreme Court dismissed Ambani's plea, observing that there was no merit in his arguments. The Supreme Court held that the NCLT had rightly admitted Ericsson India's petition and that Reliance Communications was liable to pay the outstanding amount. The court further noted that Ambani had failed to provide any evidence to support his claim that the NCLT's order was erroneous.

Implications of the Decision:

The Supreme Court's decision is a major setback for Anil Ambani and Reliance Communications. The company will now have to pay $71.3 million to Ericsson India, which will further strain its already precarious financial position. The decision also highlights the importance of adhering to contractual obligations and the consequences of failing to do so. Companies must ensure that they honor their commitments and pay their dues on time to avoid legal complications and financial penalties.