Tata-DoCoMo case: DoCoMo to realise LCIA award; High Court rejects RBI plea

In a respite to NTT DoCoMo, the Delhi High Court concluded the long regulatory clash between Tata Sons and NTT Docomo, with an order that the Japanese telecom giant will realise the USD 1.18-billion London Court of International Arbitration (LCIA) award. 

During the proceedings of this case, the High Court also rejected RBI's intervention in the enforcement proceedings, stating that the February 2017 settlement plan submitted by the two companies to settle the dispute did not contradict any provisions in the Indian law. 

The decision by the Delhi High Court stated that an Indian company fulfilling its commitment to a foreign company, has a significant influence on the goodwill, and the reputation of the company and the country, on the global platform, besides, impacting the strategic relationships between the countries. Also adding that a third party including RBI cannot be allowed to intervene and oppose the compromise between the two private companies.

Claiming that the enforcement of the LCIA award was void in law, the RBI had challenged the enforcement in the High Court. According to the RBI, the enforcement had failed to consider the regulatory prohibitions. 

The joint venture between Tata Teleservices and DoCoMo, had materialised in the year 2008, under the chairmanship of Ratan Tata.