BHARTI CELLULAR LIMITED Vs. DEPARTMENT OF TELECOMMUNICAITONS

JUDGEMENT

(1.) The Petitioner, Bharti Cellular limited ('BCL') [earlier known as Bharti Mobile Limited ('BML')], has in this petition under Section 34 of the Arbitration and Conciliation Act, 1996 ('the 1996 Act') challenged an Award dated 20th December 2002 passed by the learned sole Arbitrator in the disputes between the Petitioner and the Respondent Department of Telecommunications ('DOT') arising out of a licence agreement dated 26thDecember 1995 for provision of Cellular Mobile Telephone Service ('CMTS') in various telecom circles including Punjab. By the impugned Award the learned Arbitrator rejected the claim of BML for refund of the amount of licence fee together with interest paid by it to the DOT subject to the finding that if the Telecom Disputes Settlement and Appellate Tribunal ('TDSAT') or in any further appeal/further proceedings, it was finally held that BML was not liable to pay interest for the period of 52 days, i.e., from 18 th April 1996 to 11 th June 1997 then the DOT would refund the said amount to BML. Background facts

(2.) Prior to 29 th March 2000 BML was known as M/s. JT Mobiles Limited ('JTM'). The name of JTM was changed to BML by a certificate dated 29 th March 2000 issued by the Registrar of Companies ('ROC'), Karnataka.

(3.) On 16 th January 1995, the Government of India through Ministry of Communications, DOT issued tender documents for CMTS in various telecom circles including Punjab. JTM was provisionally selected for providing CMTS in the telecom Circles of Punjab, Andhra Pradesh and Karnataka. Since the telecom service areas of Andhra Pradesh and Karnataka were proximate while that of the Punjab Circle was not, it was decided to implement the licence agreement for the Punjab Circle by a separate legal entity. Accordingly, on 5 th December 1995, a resolution was passed by the Board of Directors of JTM for implementation of the cellular licence for the Punjab Circle through its wholly owned subsidiary M/s. Evergrowth Telecom Limited ('EGTL').