The Supreme Court has dismissed Nokia’s petition seeking permission to transfer its mobile handset manufacturing plant in Sriperumbudur, near Chennai, to Microsoft. The company’s manufacturing plant employs 8,000 workers and provides indirect employment to 24,000 people. The Supreme Court’s decision could impact the Nokia-Microsoft deal announced in 2013.

Nokia had filed the appeal after the Delhi High Court asked the company to waive off all rights to challenge the final order regarding the company’s tax liability. The Court had also asked Nokia to deposit Rs 22.5 billion in an escrow account and give an undertaking that it would meet any future tax liability.

In 2013, Nokia had signed an agreement to transfer all of its global assets to Microsoft as part of a $7.4 billion deal. In case Nokia fails to settle the tax row with the Indian Government, the company will not be able to transfer the Chennai plant to Microsoft.