SC to hear Idea row on October 29
The Supreme Court today deferred to October 29, the hearing on a petition filed by the Tatas seeking to appoint an arbitrator to resolve a dispute with Birlas over control of telecom firm Idea Cellular.
By PTI |
NEW DELHI: The Supreme Court today deferred to October 29, the hearing on a petition filed by the Tatas seeking to appoint an arbitrator to resolve a dispute with Birlas over control of telecom firm Idea Cellular.
Justice V S Sirpurkar after hearing Tatas for more than two hours adjourned the matter. Birlas are likely to start arguments on October 29.
Tata, which served two termination notices to its partner before selling its over 48 per cent stake in Idea Cellular to the A V Birla group firm Grasim, has sought arbitration on the ground that Birlas violated the shareholder agreement (SHA).
If the arbitration is settled in Tata group's favour, it will have the right to buy out Birlas' stake in Idea, which was floated in October 2001.
Tata Group, which held 48.14 per cent stake in Idea through Tata Industries (TIL) and its subsidiary Apex Investments (Mauritius) Holding, had sold it to Grasim for Rs 4,406 crore last year even while the termination notices were pending.
Tatas later moved the apex court alleging breach of SHA by Birlas and seeking appointment of a nominee arbitrator on behalf of Grasim. However, the A V Birla Group has rejected the call for arbitration.
Birlas, while seeking dismissal of the "frivolous" petition filed by Tatas, told the apex court that "(Tata) have already exited Idea Cellular by selling their shareholding to the Birla Group on the terms and conditions determined by themselves."
Justice V S Sirpurkar after hearing Tatas for more than two hours adjourned the matter. Birlas are likely to start arguments on October 29.
Tata, which served two termination notices to its partner before selling its over 48 per cent stake in Idea Cellular to the A V Birla group firm Grasim, has sought arbitration on the ground that Birlas violated the shareholder agreement (SHA).
If the arbitration is settled in Tata group's favour, it will have the right to buy out Birlas' stake in Idea, which was floated in October 2001.
Tata Group, which held 48.14 per cent stake in Idea through Tata Industries (TIL) and its subsidiary Apex Investments (Mauritius) Holding, had sold it to Grasim for Rs 4,406 crore last year even while the termination notices were pending.
Tatas later moved the apex court alleging breach of SHA by Birlas and seeking appointment of a nominee arbitrator on behalf of Grasim. However, the A V Birla Group has rejected the call for arbitration.
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Birlas, while seeking dismissal of the "frivolous" petition filed by Tatas, told the apex court that "(Tata) have already exited Idea Cellular by selling their shareholding to the Birla Group on the terms and conditions determined by themselves."
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