HC seeks Unitech's reply to telecom firm Uninor's plea

A Company Law Board order restrained the joint venture telecom firm from selling its business and assets

The Delhi High Court today sought Unitech Ltd's reply to Unitech Wireless (Tamil Nadu) Pvt Ltd's plea against a Company Law Board (CLB) order restraining their joint venture telecom firm from selling its business and assets.

Justice Indermeet Kaur issued notice to Unitech Ltd and sought its response to the plea of Unitech Wireless (Tamil Nadu) Pvt Ltd, a joint venture telecom firm between Norway's Telenor and realty major Unitech group and also known as Uninor, and fixed the matter for hearing on August 28.

Uninor had moved the court against the August 9 order of the CLB, which had stopped it from auctioning its assets.

Unitech Ltd, which holds 32.75 percent stake in joint venture Uninor, had earlier moved the CLB and had sought stopping of the sale fearing that Norwegian firm Telenor may be the only bidder in auction. The CLB had allowed the plea.

Uninor earlier on August 1 had invited potential bidders to express their interest by August 6 and said its majority owner Telenor was willing to pay Rs 4,190 crore for its 30 million customers and assets in case no other bidder turns up.

Unitech Ltd had claimed that the motive behind the asset sale was mala fide and Telenor wanted to "annihilate" the company and take over the assets.

While Telenor wants to scrap the joint venture, Unitech has opposed the move and has said the Norwegian company cannot unilaterally scrap the agreement.

The relation between Telenor and Unitech soured after the Supreme Court in February this year struck down the licenses, terming their allocation as arbitrary and illegal.

Uninor's 22 2G telecom licenses were among the 122 cancelled by the Supreme Court in February.