UNION OF INDIA Vs. RELIANCE COMMUNICATION LIMITED

JUDGEMENT

(1.) Leave granted. With the consent of the learned counsel for the parties, the appeal was heard finally. The appellant/Union of India (hereafter referred to as "the Union") is aggrieved by a direction of the Telecom Disputes Settlement and Appellate Tribunal (hereafter referred to as "TDSAT" or the "Tribunal") to return 104.34 crores lying unadjusted, 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.

(3.) The Union invited bids for auction of further spectrum bandwidth in 2015; the bids of RCL and the second appellant (hereafter "RTL") were successful in respect of three kinds of spectrum in several regions/circles; licenses were issued to them. In terms of NIA 2013, the third instalment of deferred spectrum charges of 281.45 crores fell due from RCL, which could not be paid by it. This led to the encashment on 11.05.2018, of bank guarantees furnished, to the extent of 281.45 crores. The total extent of bank guarantee furnished was 390.41 crores. Contemporaneously, the deferred spectrum liability under the NIA 2015 @ 492.79 crores became payable on 09.04.2018. The respondents (RCL and RTL) could not pay these charges. Consequently, the Union en- cashed 492.79 crores out of the bank guarantees furnished.