Nokia has filed an appeal in the Supreme Court seeking permission to transfer its mobile phone manufacturing unit in Chennai to Microsoft.

The move follows the Delhi High Court ruling on February 5 asking the company to waive off all rights to challenge the final order with regard to the tax dispute.

“Nokia is taking this step because it believes the High Court’s conditions are not aligned with international treaties and practices, and would restrict Nokia’s ability to contest tax authority actions locally and internationally,” the company said in a statement.

Under an agreement signed with Microsoft, Nokia had committed to transfer its global assets by December 12. But the ongoing tax dispute in India has raised questions about the future of its Chennai plant which employees nearly 30,000 people.

“Nokia regrets the anxiety the extended legal process has caused its employees and their families; the company will continue to do its utmost to ensure its employees can move to Microsoft. However, the court has created greater uncertainty over this possibility by imposing these new conditions,” the company said. Nokia had earlier agreed to two conditions set by the Delhi court in a bid to meet the December 12 deadline.

This included placing around ₹2,250 crore in escrow and committing to an additional capped undertaking for Nokia India’s final tax liabilities. But the company said it could not agree to the new condition to waive legal rights.

“Nokia cannot commit to these conditions and waive its legal right to defend itself after undergoing more than a year of aggressive and arbitrary actions by the Indian tax authorities. The company believes these actions run counter to domestic laws of India, international treaties and practices, including the tax and investment agreements between India and Finland,” it said.

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