Japanese telecom giant NTT DoCoMo has sued Tata Sons in a US District Court, as part of its bid to collect $1.2billion (around Rs 8,111 crore) in damages that the London Court of Arbitration had ordered the Indian business conglomerate to pay for exiting Tata Teleservices, a collaboration that ran into losses. The Japanese firm had warned its former partner that it would seek legal intervention from several courts to ensure that Tata Sons pays the award, Business Standard reported on Saturday.

The DoCoMo statement said,“The decision of the LCIA is enforceable in any country which is a signatory to the New York Convention.” DoCoMo has also challenged the Indian firm in the Delhi High Court.

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A Tata spokesperson said, “Tata Sons has emphasised its commitment to honouring its contractual obligations to DoCoMo. Performance of the award requires the approval of the Reserve Bank of India, which to date has been denied on the basis of pre-existing regulations that are fully in the knowledge of DoCoMo.” According to the Business Standard report, the RBI sought the Delhi High Court's approval to be heard in the case, which has been adjourned to December 1.

Tata Sons began with a 26.5% share in Tata Teleservices, but when the project struggled to take off for years, DoCoMo decided to terminate the agreement in 2014, reported Reuters. According to the Tokyo-based company, Tata Sons was supposed to find a buyer for their share at 50% of the original price or at market value, as per the contract, but the latter failed to do so. Moreover, the Indian major's bid to buy the shares themselves was rejected by banks because of a new government rule which forbids foreign companies from selling their stakes in an Indian firm at a pre-decided rate. In June, an international court asked Tata Sons to pay the money to DoCoMo.