9911796707
TMI Blog2002 (8) TMI 785X X X X Extracts X X X X X X X X Extracts X X X X ..... elecommunications (in short DoT ) from terminating the public switched telephone network connecting licence for U.P. (East and West Circle) allotted to them on 12th December, 1995 pending arbitration of the disputes/differences which are stated to have arisen between the parties. However, it appears that during the course of hearing of the said application before the learned Single Judge, the appellant confined his prayer in regard to the connecting licence for U.P. (East) Circle only. 2. The facts and circumstances leading to the disputes between the parties have been noted in detail by the learned Single Judge and it is not necessary for us to repeat the same once over again, except for taking note of the undisputable facts that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g demand towards interest and liquidated damage; ( iii )The interim stay order dated 24th September, 2001 will continue till the award is made by the arbitrator, however, subject to payments in terms of ( i ) and ( ii ) hereinabove by the specified date/within time; and ( iv )In case of default in any of the payments, the interim order shall stand vacated and the respondent-DoT will be free to enforce its rights under the contract." 3. We have heard Mr. Kapil Sibal, learned senior advocate representing the appellant licencee and Mr. Kriti Raval, learned Additional Solicitor General representing the respondent-DoT. Mr. Sibal, has strongly urged before us that the conditions imposed by the learned Single Judge and more particularly t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stomers do not suffer due to termination of the licence and in any case the two contentions which have been mentioned in condition 15.3 are not exhaustive and the licensing authority may take such measure to ensure the continuity of service as are deemed necessary. Clause 15.3 of the Licence of Agreement reads as under : "15.3 Whenever the licence is terminated or not extended, the Authority shall in order to ensure the continuity of service take such steps as necessary including the following : ( i )direct the Department of Telecommunications to take over or ( ii )issue licence to another Indian Company for running the service. The licensee shall facilitate taking over by DoT or the new licensee all the assets as are essential ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lause 15.3 were pre-eminently required on the part of the licensing authority. In any case, the claim of the appellant for reasonable compensation for their assets in respect of the three territories i.e. U.P. (West), Bihar and Orissa is pending adjudication before the arbitral tribunal. We, therefore, see no merit in this contention of learned counsel for the appellant that no condition for payment of the due licence fee could be imposed by the learned Single Judge on the face of clause 15.3 of the agreement. 5. It was next contended by learned counsel for the appellant that the appellant had paid a sum of Rs. 100 crores to the respondent on 8-9-2000 which was liable to be adjusted against the only operating licence, namely, U.P. (Ea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of all the four licences and the appellant cannot be allowed to take a somersault at this stage and seek adjustment of Rs. 75 crores towards the continuing licence of U.P. (East) alone. 6. Yet another ground pressed on behalf of the appellant is that the appellant has been discriminated against at the hands of the respondent DoT inasmuch as the migration package offered to the existing licensees in terms of the new telecom policy 1999, has not been equally applied to all the licensees. The appellant has not been shown any consideration/advantage of the position that it had opted to pay the licence fee in the first four years instead of 10 years as opted by various other licensees. It was also pointed out that the appellant was offered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... service in that circle. Such a situation would not be conducive or beneficial to the respondent either. 8. We have given our anxious consideration to this submission and are also mindful of the difficulties which might be faced by the appellant but it is the appellant who alone is responsible for creating a situation in which they are placed today because they had defaulted in making the payment of the licence fee as and when it become due and has allowed the arrears to be accumulated thereby entailing interest and liquidated damages to the tune of more than Rs. 100 crores. The learned Single Judge has in our opinion taken a reasonable view of the matter by directing the appellant only to deposit principal amount of licence fee which h ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
