There is a tussle between the TATA and the DOCOMO. Tata had on September 2, 2016 filed an affidavit objecting to the enforcement of the international arbitral award, in which the DoCoMo has won the case against Tata. It has initially expressing its willingness to comply with the determination and submitting the entire adjudicated sum with the registrar of the high court.
Accordinly DoCoMo, responsded comprehensively tackles the objections that Tata has raised to the enforcement of the June 22, 2016 international arbitration award in India.
“DoCoMo trusts that the Indian court will acknowledge its obligation to enforce the award. DoCoMo is hoping that Tata will work with it to enable payment of the amount due.
The arbitration award in favour of DoCoMo, is the fallout of a two-year old scuffle between the two companies regarding their unsuccessful joint venture Tata Teleservices, in which the Japanese company holds a 26 per cent stake.
As per the initial agreement, DoCoMo had been given the option of exiting the collaboration after a three-year time period, at a predetermined share price. DoCoMo’s stake was to be bought by Tata or an external buyer, which the Indian entity was to organise.
In 2014, the venture failed in generating the desired returns. Hence the DoCoMo decided to exercise its exit option, at a time when the price of Tata Teleservices shares had plunged far below the earlier decided exit amount.
Incapable of finding an external buyer, Tata had made an application to the Reserve Bank of India to acquire the DoCoMo holding themselves, as previously agreed upon. The regulator refused the application at the time, citing that such a transfer could not be made at predetermined share prices on a subsequent date, under prevalent Indian regulations.
The deadlock culminated in the international arbitral proceedings that followed, resulting in the $1.17 billion award now sought to be enforced against Tata.
Tata Sons is considering that “We are yet to examine Docomo’s response. We reiterate our earlier position that enforcement of the award in the absence of RBI’s approval would be violative of FEMA (Foreign Exchange Management Act 1999) and therefore any action towards implementing the award – whether in India or overseas – would be unlawful and against public policy.”
Tata however, also made an appeal to their joint venture partner, to join them in engaging with the authorities to reach an amicable resolution in the issue.
Professionels is of the opinion that writing contract agreement in comprehensive manner only is not sufficient; but the dispute resolution clauses also shall be written considering the future RISKS. Contesting in the name of public policy has become an order of the day, when the award is against to the Indian party. However, public policy has a limited sphere only in arbitration cases.
Professionels will take up arbitration disputes with all due diligence. Please view web site of Professionels or contact on [email protected] or +918885197533.
Accordinly DoCoMo, responsded comprehensively tackles the objections that Tata has raised to the enforcement of the June 22, 2016 international arbitration award in India.
“DoCoMo trusts that the Indian court will acknowledge its obligation to enforce the award. DoCoMo is hoping that Tata will work with it to enable payment of the amount due.
The arbitration award in favour of DoCoMo, is the fallout of a two-year old scuffle between the two companies regarding their unsuccessful joint venture Tata Teleservices, in which the Japanese company holds a 26 per cent stake.
As per the initial agreement, DoCoMo had been given the option of exiting the collaboration after a three-year time period, at a predetermined share price. DoCoMo’s stake was to be bought by Tata or an external buyer, which the Indian entity was to organise.
In 2014, the venture failed in generating the desired returns. Hence the DoCoMo decided to exercise its exit option, at a time when the price of Tata Teleservices shares had plunged far below the earlier decided exit amount.
Incapable of finding an external buyer, Tata had made an application to the Reserve Bank of India to acquire the DoCoMo holding themselves, as previously agreed upon. The regulator refused the application at the time, citing that such a transfer could not be made at predetermined share prices on a subsequent date, under prevalent Indian regulations.
The deadlock culminated in the international arbitral proceedings that followed, resulting in the $1.17 billion award now sought to be enforced against Tata.
Tata Sons is considering that “We are yet to examine Docomo’s response. We reiterate our earlier position that enforcement of the award in the absence of RBI’s approval would be violative of FEMA (Foreign Exchange Management Act 1999) and therefore any action towards implementing the award – whether in India or overseas – would be unlawful and against public policy.”
Tata however, also made an appeal to their joint venture partner, to join them in engaging with the authorities to reach an amicable resolution in the issue.
Professionels is of the opinion that writing contract agreement in comprehensive manner only is not sufficient; but the dispute resolution clauses also shall be written considering the future RISKS. Contesting in the name of public policy has become an order of the day, when the award is against to the Indian party. However, public policy has a limited sphere only in arbitration cases.
Professionels will take up arbitration disputes with all due diligence. Please view web site of Professionels or contact on [email protected] or +918885197533.