In a bid to diffuse the tension with its Japanese partner NTT DoCoMo, Tata Sons has offered a compromise formula under which the entire dispute would be submitted to the decree of the Delhi High Court.
In return, Tata Sons had asked NTT DoCoMo to withdraw all legal action in other countries.
This has, however, not been agreed to by the Japanese major, which continues to pursue the case in international courts, including in London.
According to one of the sources advising Tata Sons, the Indian company was forced to file an appeal to block the enforcement of the $1.17 billion awarded by a London court only after NTT DoCoMo rejected the proposal.
“Tata Sons has been acting in good faith. They have deposited the money in the Delhi High Court with the clear intent of settling this dispute within the laws of the country. On the other hand, NTT DoCoMo has not only refused to come to the negotiating table but they have also chosen to hold on to the shares they own in Tata Teleservices,” said the source.
Last week, Tata Sons had filed an appeal with the Delhi High Court asking it to dismiss NTT DoCoMo’s plea to enforce the $1.17-billion penalty awarded by the London Court of International Arbitration (LCIA).
NTT DoCoMo had earlier questioned the intent of Tata Sons. “The fact that Tata has raised objections to the enforcement of the London Court of Arbitration award directly contradicts its statements of intent to meet its payment obligations. The award by the LCIA is internationally recognised, including by India, and there is no reason to delay,” the Japanese firm had said in an earlier statement.
According to sources, Tata Sons would not have filed the appeal to block the enforcement of the London court’s penalty award if the Japanese company had agreed to submit to the final order of the Delhi High Court.