2018 (8) TMI 1770 - SC - Indian Laws

Settlement of debt of an Operational Creditor - Held that - This time-line shall be strictly adhered to and payment of ₹ 550 Crores (Rupees Five Hundred Fifty Crores only) be made on or before 30th September, 2018 - In the meanwhile, the undertaking that is to be given by the Chairman of the Company concerned shall be given within a period of one week from today - list on Monday, the 1st October, 2018.

Summary

Issues: Debt settlement agreement between parties, adherence to payment timeline, undertaking by the Chairman of the Company, agreement by all concerned parties, asset sale confirmation.

The judgment pertains to a debt settlement agreement between parties, specifically involving Ericsson India Pvt. Ltd., an Operational Creditor, and the debtor owing over ?1500 Crores. Ericsson India Pvt. Ltd. has agreed to settle the debt for ?550 Crores to be paid within 120 days from the date of the order, i.e., by 30th September 2018. The Supreme Court, after hearing counsels for various parties, including Neptune Steel Strips Ltd., Reliance Communications Limited, and Joint Lenders Forum/SBI, emphasized strict adherence to the payment timeline and directed the payment of ?550 Crores to be made on or before the specified date.

Furthermore, the Court mandated that the undertaking by the Chairman of the concerned Company must be submitted within one week from the date of the judgment. All parties involved, including the Joint Lenders Forum and Ericsson India Pvt. Ltd., agreed to these terms. The Court scheduled the next hearing for 1st October 2018, indicating that the sale of the assets in question will proceed as per the orders of the Tribunal and Appellate Tribunal. The judgment ensures that the debt settlement agreement is followed diligently, with necessary undertakings and agreements in place to facilitate the timely payment and asset sale as outlined in the previous orders.