Tatas 'Idea' of arbitration frivolous: A V Birla Group

Tatas agreed to a joint venture, competed with it, later walked out and are now filing "frivolous" petitions against it, the Birlas today told the Supreme Court in reply to Tata Industries' plea for arbitration on mobile firm Idea Cellular.

In its counter-affidavit filed through Ashok Malu, senior VP, Grasim Industries, the A V Birla group said Tatas' plea for arbitration to resolve a dispute related to termination of their joint venture Idea Cellular was "frivolous and vexatious."

"(Tata) have already exited Idea Cellular by selling their shareholding to the Birla Group on the terms and conditions determined by themselves," Birla group submitted.

Though Tata Industries (TIL) and its subsidiary Apex Investments (Mauritius) Holding sold their 48.14% stake in Idea to Grasim for Rs 4,406 crore last year, TIL claims that there is need for arbitration on termination notices served on Birlas before the stake sale.

TIL had served two notices seeking to terminate their joint venture with Birlas on the ground that the latter had violated the shareholders agreement.

If the arbitration is settled in Tata Group's favour, it will have the right to buy out Birlas' stake in Idea.

A bench headed by Justice V S Sirpurkar has posted the matter to September 17 for further hearing.

Tatas had earlier moved the apex court seeking to appoint a nominee arbitrator on behalf of Grasim as the latter had refused to appoint one.

Terming this approach as 'mischievous', the Birla Group said the proceedings initiated by Tatas were aimed at promoting the business interests of that group's mobile telecom companies.