CLB approves Unitech’s request to resolve the issue through international arbitration

The Unitech-Telenor issue has turned in favour of the former.

Unitech had approached the Company Law Board (CLB) under the provisions of the Arbitration and Conciliation Act in context of its stake dispute with Telenor. The real estate major had informed the CLB that arbitration was necessary to resolve the dispute.

The company had argued that Telenor had initiated the arbitration process as per the provisions of the Share Subscription Agreement. This was done to obtain indemnity. However, at the same time, the Norwegian company was rescinding the Share Holders Agreement. This, argued Unitech, was impractical, as both agreements were overlapping.

However, Telenor was deeply critical of Unitech?s attempts to obtain arbitration on the issue.

On its part, Telenor had argued that arbitration was unnecessary, as the issue is already being heard by CLB.

Now, the CLB has approved of Unitech?s request to attempt to resolve the issue through international arbitration in Singapore.