Uninor to challenge CLB order in a higher court

Telcom company Uninor today said it will move a higher court against the Company Law Board (CLB) order that stopped it from auctioning its assets.

"Since the CLB order has now been pronounced, we are able to comprehensively move our arguments towards Uninor's assets auctions to higher courts," Uninor said in a statement.

Uninor is a joint venture telecom company between Norway's Telenor and realty major Unitech.

"As we have said earlier, Uninor will pursue every legal measure available that gives its employees, customers and business partners a chance to continue beyond the licence cancellation date," the statement said.

Uninor on August 1 invited potential bidders to express interest by August 6 and said its majority owner, Norway's Telenor, was willing to pay Rs 4,190 crore for its 30 million customers and assets in case no other bidder turns up.

This move was opposed strongly by Unitech, which holds 32.75% stake in Uninor, and approached CLB against the notice.

The Company Law Board stopped Uninor from auctioning its assets. "I allow the application and injunct the respondent (Uninor) from taking any steps whatsoever in pursuance to the auction notice published on August 1 or similar notices that may have been published," CLB Chairman Justice D R Deshmukh said in his order.

Telenor wants to scrap the joint venture with Unitech and migrate its business to a new company to seek fresh operating licences as the JV's 22 telecom permits were among the 122 quashed by the Supreme Court in February.