NCLAT stays DoT show cause notices to RCom for cancellation of spectrum licence

The National Company Law Appellate Tribunal (NCLAT) on Tuesday stayed two notices issued by the department of telecommunications (DoT) to debt-ridden Reliance Communications for cancellation of its spectrum licence for delay in payment.

A bench headed by chairman Justice SJ Mukhopadhaya also stayed DoT’s March 20 letter to Axis Bank to encash the bank guarantee of Rs 2,000 crore given by RCom. It said the showcause notices to RCom and the letter to Axis Bank by the government were against the order passed by it on February 4, when it had granted protection against any asset sale without its permission.

“The show cause notices of March 14 and 15 and letter dated March 20, 2019 by DoT is against the direction passed by this tribunal,” the NCLAT said. The appellate tribunal also issued notice to DoT and directed to list the matter on April 8 along with the main case.

The NCLAT’s direction came over hearing of an application moved by RCom. Earlier on February 4, the tribunal had said that until further orders of the NCLAT or the Supreme Court, no one could sell, alienate, or create third-party rights over RCom’s assets.

Reliance Communications (RCOM)