Under the agreement between the two companies, either

Tata had to find a buyer for Docomo's shares at 50 per cent of acquisition price or buy its shares at fair market value, both leading to transfer of funds outside India, which RBI has termed as illegal.

In November 2009, Docomo had acquired 26.5 per cent stake in TTSL for about Rs 12,740 crore. The two had also agreed that in case Docomo exits the venture within five years, it will be paid a minimum 50 per cent of the acquisition price through the purchase of its shares by a buyer who would be found by Tata.

The other option was Tata purchasing the shares at fair market value.

LCIA had awarded damages of USD 1.17 billion in favour of Docomo for Tata's alleged breach of the agreement regarding buying of the Japanese company's stake on its exit.

Docomo moved the Delhi High Court for enforcement of the award after Tata cited refusal of permission by RBI to make the payment.

Docomo in an affidavit had said that RBI's permission was not required for paying the damages.

(This article has not been edited by DNA's editorial team and is auto-generated from an agency feed.)