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TMI Blog2020 (1) TMI 240X X X X Extracts X X X X X X X X Extracts X X X X ..... sted, to the respondents (collectively hereafter referred to as "RCL/RTL"). 2. The facts necessary for this judgment are that the Union had, on 30.01.2013, published a notice inviting bids (hereafter referred to as "NIA 2013"), for the auction of spectrum. Sistema Shyam Teleservices Ltd. (hereafter referred to as "Sistema") was the successful applicant in respect of the 800 MHz band spectrum for eight circles/regions. By orders of the court, a Scheme for Amalgamation under the erstwhile Companies Act, 1956 was approved, by virtue of which Sistema merged with RCL. Resultantly, its assets and liabilities, including the spectrum license it had successfully bid for - to NIA 2013 devolved on RCL. The Union approved this transfer on 20.10.2017. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f realizing dues payable by RCL and RTL, (to the tune of Rs. 45,000 crores) are cited by the respondents as reasons for default in fulfilling the commitments under the licenses. It is also stated that these two respondents eventually decided to exit from the strategic debt restructuring framework and monetize their assets, including the spectrum licenses. These circumstances led the respondents (RCL and RTL) to approach TDSAT complaining of acute financial crunch as well as interim orders made in the course of litigation with lenders, to seek relief by way of extension of time towards payment of deferred spectrum charges, (under the licenses acquired under the NIA 2013 and NIA 2015). The reliefs claimed in TP 56/2018 and TP 58/2018 were dec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 795.77 crores in March-April 2019. 7. The TDSAT, by its impugned order, partly allowed the respondent's application after noting the Union's reservations and objections. The TDSAT observed as follows: "In our considered view the request of the respondent would amount to a demand for enhanced bank guarantee for other purposes. This cannot be achieved through the method of encashment of bank guarantees furnished for deferred Spectrum Charges. The existing charges against the petitioner have already been taken note of and an amount of Rs. 30.33 crores approx. has been adjusted out of the encashed amount of Rs. 908 crores. The remaining amount of Rs. 104.34 crores is lying and unadjusted amount should be returned to the petitioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rther submitted that encashment of the bank guarantees in respect of the subsequent default of the deferred spectrum instalments for the year 2019 was stayed by the NCLAT (National Company Law Appellate Tribunal). Thereafter, the moratorium was revived qua the Respondents and therefore, the appropriate remedy available to the Union was under the IBC (Insolvency and Bankruptcy Code). The Union, it is stated, has already filed its claim before the resolution professional for the said deferred spectrum instalments for the year 2019. Therefore, it cannot be permitted to claim adjustment of the unlawfully encashed amount towards subsequent deferred spectrum liabilities. The respondents also urge that a subsequent default of the deferred spectrum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a recapitulation of all circumstances, and the various terms of NIA 2013 and NIA 2015, 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 Rs. 774.25 crores. The total amount realized upon encashment of the bank guarantees furnished by the respondents, however, was to the extent of 908.91 crores. It is Rs. also a matter of record that the respondents furnished another bank guarantee to the tune of Rs. 774.25 crores. There is consequently logic and merit in the contention of RCL/RTL that the Union unreasonably refused to refund the excess amounts. The Union' ..... X X X X Extracts X X X X X X X X Extracts X X X X
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