The Swedish telecoms equipment maker, which signed a seven-year deal in 2014 to operate and manage Reliance Communications' nationwide network, is seeking a total of Rs 1,155 crore from the company and two of its subsidiaries.
Reliance Communications, widely known as RCom, reported its third quarterly loss in a row last month. It is trying to find ways to cut debt after lenders gave it a reprieve on loan repayments until the end of 2017.
Reliance Communications' bonds also fell in early trading on Thursday, with its 6.5 per cent bonds due 2020 indicating at 55/60 cents on the dollar, versus earlier indicating at 57/62 on the dollar.
"This seems like the first salvo has been fired but Ericsson is unlikely to push RCom to bankruptcy," said a Hong Kong-based trader.
Ericsson is protecting its own interests and this could open the door for negotiation later, "but I do expect some selling particularly from private banking bondholders," the trader said.