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Regular-article-logo Tuesday, 20 January 2026

Tata-DoCoMo dispute reaches US

Resolution eludes a dispute between the Tatas and NTT DoCoMo with the Japanese firm now filing a case against Tata Sons in a US court to enforce a $1.17-billion award by the London Court of International Arbitration (LCIA).

Our Special Correspondent Published 08.10.16, 12:00 AM

Mumbai, Oct. 7: Resolution eludes a dispute between the Tatas and NTT DoCoMo with the Japanese firm now filing a case against Tata Sons in a US court to enforce a $1.17-billion award by the London Court of International Arbitration (LCIA).

DoCoMo today said it has taken a further step to enforce the London court award against the Tata group by approaching the United States District Court for the southern district of New York.

"The decision of the London court that Tata has breached its commercial agreement and owes DoCoMo $1.2 billion in damages is enforceable in any country that is a signatory to the New York Convention, including the United States. Until DoCoMo receives the full amount due, it will continue to seek enforcement globally," a statement issued by DoCoMo said.

In a late night statement, Tata Sons today said it has filed evidence in support of its September 5, 2016 application before the English High Court of Justice. The application seeks to set aside the Court's July 25, 2016 ex-parte order that granted NTT Docomo leave to enforce the LCIA arbitral award dated June 22, 2016.

Tata Sons' evidence outlines the grounds on which enforcement of the award will be resisted by it. These include: first, that Docomo has not validly tendered its shares in Tata Teleservices to Tata Sons; second, that performance of the award without approval by the Reserve Bank of India would be illegal under Indian law and/or contrary to public policy.

"By pursuing the above application, Tata Sons is following the path laid down by the arbitral tribunal in the award. The tribunal expressly left open the issue of whether performance of the award would require approval from the RBI. Tata sought such approval and was refused. Accordingly, Tata Sons' actions do not, in any manner, detract from its stated commitment to discharge its obligations to the fullest extent permitted under law," the statement said

"On that basis, Tata Sons is resisting enforcement in India and will resist in any other jurisdiction DoCoMo files in. Tata Sons has already placed the full amount awarded to DoCoMo in the arbitration - $1.17 billion in cash - with the Delhi high court, where DoCoMo has previously filed for enforcement and the entire issue is pending adjudication," a Tata Sons spokesperson said.

DoCoMo had in August said that India, being a signatory to the New York Convention, was bound to enforce the award decision of the London court that ordered the Tata Group to pay the compensation.

NTT DoCoMo in November 2009 acquired a 26.5 per cent stake in Tata Teleservices for about Rs 12,740 crore (at Rs 117 per share). This was under a 2008 understanding that in case it exited the venture within five years, it would be paid a minimum 50 per cent of the acquisition price.

While the Japanese firm later sought Rs 58 per share from the Tatas for the sale of its 26.5 per cent stake in Tata Teleservices, the Tatas offered Rs 23.34 a share in line with RBI guidelines. The offer was made on the basis of a fair market value determined on June 30, 2014.

Consequently, DoCoMo filed for arbitration on January 5, 2015 and on June 23, it won an award from the LCIA.

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