Tata Sons seeks time to reply to UK court order

Tata Sons has sought two weeks' extension to respond to London's Commercial Court's ex-parte order allowing NTT Docomo to attach Tata's foreign assets to enforce a $1.17-billion arbitration award in favour of the Japanese company. NTT Docomo has not opposed Tata Sons' move to seek extension for responding to the court's order, said a person familiar with the development.

The move comes after Tata Sons' brass including chairman Cyrus Mistry and chairman emeritus Ratan Tata met NTT Docomo officials. Japanese executives included Docomo chief executive Kaoru Kato.

"The matter is sub judice. We have no comments to offer," said a Tata Sons spokesperson. An NTT Docomo spokesperson declined to comment on the development.

A three-member international arbitration panel had ordered Tatas to pay $1.17 billion (Rs 7,956 crore) to NTT Docomo for breach of contract on the ground that the Indian group neither found a buyer nor bought back the Japanese partner's 26 per cent stake in Tata Teleservices.

The contract was made at the time of investment by NTT Docomo.

But, a change in Indian regulation led to the Reserve Bank of India objecting to the transaction committed on a pre-fixed price.

This saw NTT Docomo move the Delhi High Court on the matter, which gave time till August 30 for both the parties to try and resolve the issues between them.

Last month, Tata Sons had also transferred the full amount, $1.17 billion, into fixed deposits favouring the Court Registrar, New Delhi, without prejudice to its legal rights.

"Tata Sons wishes to clarify that it has in the past, as well as after the arbitral tribunal announced its award, invited Docomo to join it in representing this matter before the Reserve Bank of India and the ministry of finance," Tata Sons said.