Tata Sons has formally announced that it has reached an agreement with NTT DoCoMo of Japan.
This was its joint venture partner in Tata Teleservices Ltd., for an out-of-court settlement of their dispute.
As per the announcement, TATA Group and NTT DoCoMo have embarked on a joint approach to enable enforcement of the June 22, 2016, London Court of International Arbitration (LCIA) award.
The two had jointly applied to the Delhi High Court, requesting that it accept their agreed terms of settlement, subject to such further orders as the court sees fit.
The settlement terms, if approved by the Delhi High Court, would clear the way for the US$1.18 billion already deposited by Tata Sons with the Delhi High Court to be paid to NTT DoCoMo.
It would also allow DoCoMo to transfer its shares to Tata Teleservices Limited.
In 2009, DoCoMo acquired 26.5 % stake in Tata Teleservices.
The two also agreed on a clause at that time that allowed the Japanese firm to exit the venture at a pre-determined minimum price.
The Reserve Bank of India, however, felt that such an exit could happen only at fair market value in tune with an amended rule in 2013. Since then, the dispute between the two has become a legal war.
The DoCoMo dispute is the centre of the TATA Sons dispute with Cyrus Mistry.
