India’s bankruptcy cases tribunal on Friday refused to direct State Bank of India (SBI) to release income tax refund of Rs 260 cr to allow Reliance Communications to repay Swedish telecom maker Ericsson.
“No direction can be given to any party to settlement to perform certain duties to ensure settlement between other parties,” said the National Company Law Appellate Tribunal (NCLAT).
Reliance Communications had sought release of tax refunds from a trust and retention account, but SBI and its other lenders were opposed to this.
Ericsson signed a deal with Reliance Communications in 2014 to manage and operate its network and last year approached NCLAT over unpaid dues.
(With inputs from Reuters)