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2020 (1) TMI 240 - SC - Indian LawsAuction - payments towards deferred spectrum instalment charges - allegation that these deferred instalment charges could not be made within the time granted - HELD THAT - The respondent-licencees faced financial constraints; apparently telecom service providers as a class also faced some financial stress, which triggered the Union to revisit its policy and ultimately modify the terms of payment of deferred payment charges and consequently, the letter of 19.03.2018. Despite these, the respondent licensees could not fulfil the conditions of the licenses held by them (i.e. NIA 2013 and NIA 2015) vis- -vis payment of deferred spectrum charges; they approached the TDSAT, but without success. Their appeals to this court fared better; the time for making payment was extended somewhat. Upon default (in payment of the charges), the Union invoked guarantees under the sets of licenses. This court is of the opinion that the order of the TDSAT does not call for any interference. The Union nowhere disputes that the respondent licensees liability toward payment of deferred spectrum charges, in May, 2018, was to the tune of ₹ 774.25 crores - there is no rationale for the Union to resist the demand for refund of excess amounts. The TDSAT, in the opinion of this court, exercised its discretion, with respect, circumspectly, because the entire amount of ₹ 134.66 crores claimed in the application was not allowed; rather the direction issued was in respect of ₹ 104.34 crores. There is no merit in the present appeal - appeal dismissed.
Issues:
1. Direction to return unadjusted amount to respondents by TDSAT. 2. Interpretation of NIA 2013 and NIA 2015 terms regarding deferred spectrum charges. 3. Dispute over excess amount retained by Union and bank guarantees. 4. Application of TDSAT's order in execution proceedings. 5. Union's refusal to refund excess money and respondents' claim of unjust enrichment. Analysis: Issue 1: The Supreme Court addressed the appeal filed by the Union of India against the Telecom Disputes Settlement and Appellate Tribunal's (TDSAT) direction to return ?104.34 crores lying unadjusted to the respondents. The Tribunal partially allowed the respondent's application, leading to the Union disputing its liability before TDSAT, citing NIA 2015 provisions and default interest payable by the respondents. Issue 2: The Court analyzed the terms of NIA 2013 and NIA 2015, focusing on the deferred spectrum charges and subsequent defaults by the respondents. The Union contended that the respondents were continuously defaulting in payments, while the respondents argued that the Union's refusal to refund the excess money amounted to unjust enrichment. Issue 3: Regarding the excess amount retained by the Union and the bank guarantees, the Court found that the respondents faced financial constraints, leading to modifications in payment terms. Despite furnishing guarantees and subsequent defaults, the Union did not refund the excess amounts, prompting the respondents to approach TDSAT for relief. Issue 4: The Court examined the application of TDSAT's order in execution proceedings, with the Union arguing against the refund based on subsequent defaults and short payments. However, the Court upheld TDSAT's decision, emphasizing the reasonableness of refunding the excess amounts to the respondents. Issue 5: In the final analysis, the Court dismissed the appeal, stating that the TDSAT's order did not warrant interference. The Court found merit in the respondents' claim for refund, considering the furnishing of bank guarantees and the Union's refusal to return the excess amounts. The decision highlighted the discretion exercised by TDSAT and upheld the direction to return ?104.34 crores to the respondents. In conclusion, the Supreme Court upheld TDSAT's decision, emphasizing the reasonableness of refunding the excess amounts to the respondents and dismissing the appeal without costs.
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