UNION OF INDIA Vs. MICROWAVE COMMUNICATIONS LTD

JUDGEMENT

(1.) Union of India ('UoI') in this petition under Section 34 of the Arbitration and Conciliation Act, 1996 ('Act') challenges an Award dated 13 th February 2004 to the extent it rejects the Petitioner's claim against the Respondent to recover a sum of Rs. 1,21,42,490/- together with interest from 1 st January 2003 till the date of payment.

(2.) The Respondent Microwave Communications Ltd. ('MCL') applied to the Department of Telecommunications ('DoT') for grant of licence for operation of Voice Mail Service ('VMS') on their Radio Paging Network in Mumbai, Delhi, Calcutta, Ahmedabad and Surat. The Petitioner DoT issued to the Respondent a letter of interest ('LOI') on 30 th January 1996 granting licences for the said five Service Areas.

(3.) As per the terms of the LOI, the Respondent MCL furnished to the Petitioner 10% licence fee for all the five Service Areas, Financial Bank Guarantee ('FBG') for a sum of Rs. 22.5 lakhs towards 90% of the balance minimum licence fee payable for the five Service Areas and two Performance Bank Guarantees ('PBGs') of Rs. 5 lakhs each. Five separate licences for each of the five cities were signed between the Petitioner and Respondent on 17 th May 1996.