New Delhi, Aug. 18 -- The insolvent Reliance Communications (RCom) has alleged that Swedish Telecom company Ericsson has been using India's Insolvency and Bankruptcy Code (IBC), 2016 as a tool for coercion and debt recovery, and to seek 'preference' in repayments over other creditors.

Gaurav Joshi, senior counsel appearing for RCom, argued before the National Company Law Tribunal (NCLT),"IBC is not to be used as a tool for coercion and debt recovery by individual creditors. [This is] exactly what Ericsson was doing - improperly using IBC to include insolvency as a substitute for debt enforcement or attempting to obtain preferential payments by coercing the debtor using insolvency proceedings."

A bench led by Justices Prabhat Kumar and S...