The Japanese telecom firm NTT DoCoMo has moved a US court to force its estranged Indian partner Tata Group to pay $1.2 billion awarded as damages by an international arbitration for breach of contract.
While, Tata Sons said it will resist enforcement of the arbitration award in India as also other jurisdictions as it has been barred by Indian law and public policy for paying damages awarded for breaching a contract to buyback DoCoMo shares in their joint venture at a pre-agreed price.
Japan's largest telecom firm said in a statement, that, "DoCoMo has taken a further step to enforce the London Court of Arbitration (LCIA) award against Tata by commencing action in the United States District Court for the Southern District of New York."
"Until, DoCoMo receives the full amount due, it will continue to seek enforcement globally," the statement said.
"Tata Sons maintains the same position with respect to the award. However, performance of the award requires the approval of the Reserve Bank of India, which to date has been denied on the basis of pre-existing regulations that are fully in the knowledge of DoCoMo.
"Until it has been authorised to proceed with payment by the relevant Indian legal authority, Tata Sons has been advised that enforcement of the award would be contrary to Indian law and public policy," the statement said.
Tata Sons said on that basis it is "resisting enforcement in India and will resist enforcement in any other jurisdiction DoCoMo files for enforcement".
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