Companies

DoCoMo sues Tata Sons in US court, seeking $1.1 b

Our Bureau Mumbai | Updated on January 16, 2018 Published on October 07, 2016

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Indian company says it will resist enforcement

Japanese telecom major NTT DoCoMo has filed an application in a US court seeking $1.17 billion from Tata Sons. The suit has been filed in the US District Court for the Southern District of New York. The move is aimed at enforcing the penalty awarded by the London Court of Arbitration (LCIA) against Tata.

“The decision of the LCIA that Tata has breached its commercial agreement and owes DoCoMo $1.2 billion in damages is enforceable in any country which is a signatory to the New York Convention, including the US. Until DoCoMo receives the full amount due, it will continue to seek enforcement globally,” the Japanese company said in a statement.

Responding to the latest salvo, Tata Sons said it is resisting enforcement in India and will resist enforcement in any other jurisdiction in which DoCoMo files for enforcement.

“Tata Sons has from the outset emphasised its commitment to honouring its contractual obligations to DoCoMo in accordance with the applicable law. 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 Indian company said.

Once partners, now foes

The two companies have been at loggerheads over their joint venture, Tata Teleservices. The London court had asked the Tatas to pay $1.17 billion to the Japanese major as compensation.

The dispute dates back to January 2015, when NTT DoCoMo moved the London Court of International Arbitration against Tata Sons for failing to find a buyer for its stake in Tata Teleservices.

Published on October 07, 2016
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