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Case Summary: Reliance Communication Limited & Ors. vs. State Bank of India & Ors.

This post has been written by Mamta Kumari, a law student of Banasthali Vidyapith.

CASE TITLE: Reliance Communication Limited & Ors. v. State Bank of India & Ors.

DATE OF DECISION: 20.02.2019

PETITION NO.: Writ Petition (Civil) No. 845 of 2018

COURT: Supreme Court of India

PARTIES: PETITIONER– Reliance Communications Limited & Ors.

               : RESPONDENT– State Bank of India & Ors.

LAWYERS: PETITIONER– Shri Neeraj Krishan Kaul

                 : RESPONDENT– Shri Dushyant Dave


In this case three contempt petitions were filed before Supreme Court of India by Ericsson Pvt. Ltd. Against Reliance Companies i.e. Reliance Communication, Reliance Telecom Ltd. And Reliance Infratel Ltd.



Petitioners contended that due to the objection of the Department of Telecommunication, the assets of the company could not be sold.

Further it was stated by the petitioner that there was no breach of undertaking as the undertakings were in consonance with the order of Supreme Court and NCLT.

Further stated that the petitioners were not able to sell three assets, so the insolvency process should be start again after which the companies would be able to pay the outstanding amount to Ericsson. Petitioner also stated that the companies had already paid some percentage of amount.

Respondent contended that it was never said by the Supreme Court and NCLT that the amount of Rs. 550 would be paid upon the condition of sale of assets or spectrum of petitioners.

Further contended that the petitioners would be liable for contempt as no bonafide attempts were made for the payment of money and the undertakings by the petitioners were in contravention of order of Supreme Court and NCLT.


The Supreme court held the petitioner to be liable for the contempt of court and has hampered the administration of justice by submitting two different undertakings before NCLT and Supreme Court of India. Court directed to make payment of Rs 118 to Ericsson which was earlier paid to the Registry of the court within one week.

The court also directed the Reliance Communication to pay Rs. 453 to Ericsson within four weeks to purge contempt of court. In default of the payment of outstanding amount, the Chairman will suffer three months imprisonment who has given undertaking to the court.

Further court ordered to pay Rs. 1 Crore fine to Registry of Court for each Company within four weeks. And this sum will be paid to the Supreme Court Legal Service Committee. The Chairman of these Companies will suffer the imprisonment of one month in default of payment of fine.


Insolvency and Bankruptcy Code, 2016

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