New Delhi: The Supreme Court Wednesday held Reliance Communications Ltd (RCom) and its chairperson Anil Ambani in contempt in a case filed by Ericsson India.
The top court refused to accept the unconditional apology tendered by Ambani, observing that he had taken a “cavalier attitude” towards orders it had passed.
A two-judge bench of Justices Rohinton Nariman and Vineet Saran also directed RCom to pay Rs 453 crore within four weeks or Ambani will face three months in jail. The amount is in addition to the Rs 118 crore that RCom had deposited with the Supreme Court registry.
Additionally, three RCom entities have been directed to pay Rs 1 crore each towards the Supreme Court legal aid in four weeks. Failure to comply with these orders will result in the director of these entities spending one month behind bars.
The bench said the three companies did not adhere to the 120-day deadline or the extra 60-day “indulgence” granted by the court to pay Rs 550 crore owed to Ericsson.
The undertaking given by the companies was false. This has affected the administration of justice and is a breach of undertaking given to the apex court, the bench said.
To say that Reliance did not take advantage is fully incorrect, the apex court ruled.
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The case
The top court’s verdict, reserved on 13 February, came on a plea filed by Ericsson India seeking to recover money from the beleaguered telecommunications company.
On 3 August last year, the top court had directed RCom to pay Ericsson India Rs 550 crore by 30 September.
In October, Reliance sought an extension to pay off the dues. On 23 October, the court gave Reliance a “last opportunity,” and allowed it to pay off the dues by 15 December 2018 along with interest.
However, in December, Reliance once again filed a plea for an extension, though that was soon withdrawn.
In January, Ericsson India filed a plea against Reliance suggesting that Ambani violated two SC orders – 3 August and 23 October.
During arguments, senior advocate Dushyant Dave suggested that they (Ambani and the other directors) “live like emperors…fly in private jets and live in mansions…” but don’t have money to pay off their dues.
“They have money for Rafale (the controversial defence deal). Somebody who is involved in every conceivable project has no money to pay Rs 550 crore, honour the SC orders,” Dave argued.
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