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2010 (10) TMI 1251 - SC - Indian Laws

Issues involved:
The judgment involves issues related to the methodology for calculating the number of subscribers for determining the licence fee, charging interest on the licence fee, entitlement to reduction in unit call rate, and levy of penal interest on the licence fee.

Methodology for calculating number of subscribers:
The Tribunal clarified that the basis for calculating the number of subscribers for determining the licence fee shall be the total figure of IMSI in the Home Location Register. The appellant's acceptance of the Migration Package, which included a clause abandoning disputes related to the Licence Agreement up to July 31, 1999, prevented them from raising any issues related to the pre-migration period. The Tribunal's view was upheld by the Court, citing the principle that one cannot approbate and reprobate, and once benefits are accepted, disputes cannot be raised later.

Charging interest on licence fee:
The Tribunal held that the respondent was entitled to recover licence fee with interest up to July 1999, but not advance quarterly licence fee for July-September 1999 and revenue-sharing fees for August and September 1999 as per the Migration Package. This decision was not challenged by the appellant or the Government, and the Tribunal's order was upheld.

Reduction in unit call rate:
The Tribunal interpreted the relevant clause in the Licence Agreement regarding the unit call rate revision, stating that the revision was limited to 75% of the overall increase in the unit rate. It was concluded that the revision was only envisaged in case of an increase in the unit call rate, not for a decrease. The appellant did not provide evidence or raise the issue of unit call rate before or after the licence was issued, and the Tribunal's decision was upheld.

Levy of penal interest:
The Tribunal's decision to allow the recovery of interest on the outstanding licence dues for the period of default was upheld by the Court. It was deemed appropriate for the respondent to charge simple interest on the overdue amount to keep the licence valid instead of terminating it for default. The Court found no reason to interfere with the Tribunal's order or the directions issued for re-working the dues along with interest.

The appeal was dismissed without any order as to costs.

 

 

 

 

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