TATA TELESERVICES LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) These are petitions filed by the petitioners under section 9 of the Arbitration and Conciliation Act, 1996 seeking for an injunction against the respondent restraining the respondent from giving effect to the letter dated 25/1/1999 and also restraining the said respondent from taking any action for encashing the bank guarantees furnished by the petitioners. All the petitioners have also sought for ad interim injunctions pending disposal of the petitions. However, the respondent entered appearance and therefore, the respondent has also been heard. As the facts relating to the present petitions are similar and contentions raised by the counsel appearing for the parties are also similar, therefore, I propose to discuss and appreciate the contentions of the rival parties and give my decision thereon by this common order. O.M.P.58/1999: Since the petitioner has sought for an ad interim injunction till the disposal of the petition, I have heard Mr. Arun Jaitley, appearing for the petitioner as also Mr. Trivedi, Additional Solicitor General appearing for the respondent. The petitioner herein was given a license by the respondent for setting up and operating basic telephone services in the State of Andhra Pradesh. The said license was valid for a period of 15 years and the license fee payable by the petitioner over a period of 15 years is Rs.4,200 Crores, of which a sum of Rs.120 Crores is payable for each of the first five years. The petitioner, it is stated, has paid the first years license fee and currently the second years license fee is due. The respondent by letter dated 25/1/1999 called upon the respondent to pay the license fee which is due and almost informed that if there be any difficulty in paying the entire amount in lumpsum the petitioner could pay 20% of the license fee and furnish enhanced bank guarantee for the balance, failing which it was stated in the said letter that the respondent would take action in terms of the license agreement and adopt other remedies open to the Licensing Authority. Being aggrieved because of aforesaid proposed action intimated through the said letter the present petition has been filed, contending inter alia, that the petitioner proposes to invoke the arbitration clause in the agreement. O.M.P.59/1999:

(2.) Since the petitioner has sought for an ad interim injunction till the disposal of the petition, I have heard Mr.K.K.Venugopal and Mr. Gopal Subramaniam, Senior Advocates appearing for the petitioner as also Mr. Trivedi, Additional Solicitor General appearing for the respondent. The petitioner herein was given a license by the respondent for setting up and operating basic telephone services in the Maharashtra Telecom Circles which included Mumbai and Goa. The said license was valid for a period of 15 years and the license fee payable by the petitioner over a period of 15 years is Rs.13,909 Crores, of which a sum of Rs.397.50 Crores is payable for each of the first five years. The petitioner, it is stated, has paid the first years license fee and currently the second years license fee is due. The respondent by letter dated 25/1/1999 called upon the respondent to pay the license fee which is due and almost informed that if there be any difficulty in paying the entire amount in lumpsum the petitioner could pay 20% of the license fee and furnish enhanced bank guarantee for the balance, failing which it was stated in the said letter that the respondent would take action in terms of the license agreement and adopt other remedies open to the Licensing Authority. Being aggrieved because of aforesaid proposed action intimated through the said letter the present petition has been filed, contending inter alia, that the petitioner proposes to invoke the arbitration clause in the agreement. O.M.P.55/1999:

(3.) Since the petitioner has sought for an ad interim injunction till the disposal of the petition, I have heard Mr. Shanti Bhushan, appearing for the petitioner as also Mr. Trivedi, Additional Solicitor General appearing for the respondent. The petitioner herein was given a license by the respondent for setting up and operating basic telephone services in the State of . The said license was valid for a period of 15 years and the license fee payable by the petitioner over a period of 15 years is Rs. Crores, of which a sum of Rs. Crores is payable for each of the first five years. The petitioner, it is stated, has paid the first years license fee and currently the second years license fee is due. The respondent by letter dated 25/1/1999 called upon the respondent to pay the license fee which is due and if there be any difficulty in paying the entire amount in lumpsum the petitioner was directed to pay 20% of the license fee failing which it was stated in the said letter that the respondent would take action in terms of the license agreement and adopt other remedies open to the Licensing Authority. Being aggrieved by the aforesaid letter the present petition has been filed.