Unitech has no right to seek arbitration after moving CLB: Telenor

NEW DELHI: Norwegian mobile operator Telenor today said Unitech has no right to seek arbitration on the dispute over control of joint venture Uninor, as the real estate firm has already filed petition before the Company Law Board (CLB).

Telenor Counsel S N Mookherjee, appearing for Telenor in CLB, argued that Unitech has no right to seek arbitration as they have filed petition before the CLB.

"Arbitration is consensual remedy. They cannot ask for arbitration after having filed petition before this honourable court," Mookherjee said.

Citing various judgements and court cases, Mookherjee said once plaintiff files a suit, it has no right to refer the case for arbitration.

Unitech had moved a petition in the CLB under provisions of 'Arbitration and Conciliation Act' seeking arbitration on the ongoing dispute with Telenor, which holds about 67.25 per cent stake in the joint venture--Uninor.

CLB Chairman Justice B R Deshmukh has asked Telenor to conclude their argument in session tomorrow as other cases are suffering.

The joint venture partners have been at loggerheads over a slew of issues. Later in February, the Supreme Court cancelled 122 licences, including 22 held by Uninor.

Holding the Indian partner responsible for the breach of warranties related to the cancellation of the licenses, the Norwegian firm wanted to dump its partner Unitech after the Supreme Court verdict.

While Telenor had requested for the "exclusion" and "removal" of Unitech MD Sanjay Chandra and his two other nominees from the "management and administrative affairs of Uninor", Unitech had asked for maintaining the status quo of Uninor, and not allowing transfer of its assets to any other company without its consent.

The warring partners have since then moved the CLB which is hearing cross-petitions filed by them.