ENTERTAINMENT NETWORKS (INDIA) LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) A short question as to whether Bank Guarantees furnished by the respondent No.3 herein on behalf of the petitioner to the Union of India are conditional ones or not is the question which arises for consideration in these petitions. Background Facts On a tender floated by the first respondent herein inviting FM broadcast through private agencies upon grant of licenses in 40 cities including Lucknow, Hyderabad and Cuttack (non -metro cities), the petitioner herein submitted its bids therefor. It was declared the highest bidder for the said cities amongst others. Indisputably, in terms of the auction notice, 50% of the reserved license fee was deposited by the petitioner. For various reasons, which we would notice hereinafter, however, no license by the WPC Wing of the Department of Telecommunications had been granted, although frequency was allocated (which was not to be treated as a license) to the petitioner by its letter dated 29.12.2000. It reads as under: ... 1. PARAMETERS: (a) FREQUENCY: 98 MHz (b) EMISSION: 180K0F3E (c) WORKING HOURS FROM: 0000 to 2400 (d) TRANSMITTER POWER: 10 kW (e) ANTENNA GAIN: 7 dB MAXIMUM

(2.) _ (a) License fee: Rs. 100/ -PER ANNUM (b) Royalty: Rs. 72,000/ -PER ANNUM TOTAL: Rs. 72,000/ -

(3.) LOCATION OF FM BROADCAST STATION: HYDERABAD