Axiata Group Berhad’s and NCell’s arbitration case which was brought to the International Centre for Settlement of Investment Disputes in the UK, referring to an arbitration proceeding (Case against the Federal Democratic Republic of Nepal involving the acquisition of an indirect 80% shareholding in Ncell in 2016, the tribunal has rendered an award dismissing the claims made by Axiata UK and Ncell.
The case refers to a 2019 filing by Axiata against the Nepal government claiming damages worth US$400 million citing breach of bilateral agreement, injustice, and unjustified taxes on the company. Besides claims, Axiata had also levied 16% interest till the date of payment beginning of the filing of the case.
The Tribunal has indicated that Nepal should refrain from demanding any further tax, fees, penalties, or interests in relation to the Transaction. Arising from Nepal’s non-adherence to Tribunal orders during the early stage of the process, Nepal has also been ordered to pay certain sums to Axiata UK and Ncell, a sum of approximately USD1.4 million (RM6.5 million) to Axiata and to reimburse Ncell for the cost of a loan taken out by Ncell. No sums are payable by Axiata UK or Ncell under the Award.
Axiata in a statement said it respects the decision of the Tribunal and is consulting its legal advisors in relation to the Award.
