Dismissing Telenor’s plea opposing arbitration in the dispute, the Company Law Board (CLB) has allowed Unitech’s plea to move a case on a dispute over its telecom joint venture with Norway’s Telenor for international arbitration in Singapore. The order comes over cross petition filed by Unitech and Telenor against each other before CLB.
Telenor, however, is expected to challenge CLB order in a higher court as it would transfer Uninor’s assets, employees and customers to the new company that it plans to establish. Unitech last month sought the CLB’s approval to move the case to an arbitration panel.
Telenor holds 67.25 per cent stake in Uninor, whose telecom licences were among the 122 cancelled by the Supreme Court last month. Following the cancellation of licences, Telenor accused Unitech of breach of warranties and sought damages.
