New Delhi: As an official word over the unprecedented exit of Cyrus P. Mistry from the Tata Group is yet to come out, speculations have it that the ongoing legal battle between NTT DoCoMo may be one of the reasons that led to this development.
According to sources, DoCoMo is said to be one of the biggest simmering points between Ratan Tata and Cyrus Mistry. As per the agreement signed between the Japanese Telecom Company and Tata Sons, Ratan Tata was leading the group and had assured DoCoMo that whenever they exit at the time of incurring a loss, they would get half of the money they had invested in Tata Teleservices.
Earlier this month the Japanese firm had moved a US court in a dispute between NTT DoCoMo and Tata Sons over the enforcement of a US $1.17 billion award by the London Court of International Arbitration (LCIA)
Tata Sons said that it would resist the enforcement and filed evidence before the English High Court of Justice in London supporting its application for setting aside the UK court order.
In a statement issued on late Friday night, the Indian conglomerate said that it has from the outset “emphasised its commitment to honouring its contractual obligations to DoCoMo in accordance with the applicable law 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,” said a Tata Sons spokesperson.
“On that basis, Tata Sons is resisting enforcement in India and will resist enforcement in any other jurisdiction DoCoMo files for enforcement,” he said.
However, NTT DoCoMo had claimed USD 1.17 billion, but Mistry turned it into a legal battle which was not taken politely by Ratan Tata.
As per sources, after this rigid step taken by Cyrus, DoCoMo also reached out to Tata Sons stating that they would like to deal only with Ratan Tata.For all the latest Business News, download NewsX App