{"id":98050,"date":"2002-05-31T00:00:00","date_gmt":"2002-05-30T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/koshika-telecom-limited-vs-union-of-india-uoi-on-31-may-2002"},"modified":"2017-12-05T11:49:36","modified_gmt":"2017-12-05T06:19:36","slug":"koshika-telecom-limited-vs-union-of-india-uoi-on-31-may-2002","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/koshika-telecom-limited-vs-union-of-india-uoi-on-31-may-2002","title":{"rendered":"Koshika Telecom Limited vs Union Of India (Uoi) on 31 May, 2002"},"content":{"rendered":"<div class=\"docsource_main\">Delhi High Court<\/div>\n<div class=\"doc_title\">Koshika Telecom Limited vs Union Of India (Uoi) on 31 May, 2002<\/div>\n<div class=\"doc_citations\">Equivalent citations: 98 (2002) DLT 665<\/div>\n<div class=\"doc_author\">Author: D Jain<\/div>\n<div class=\"doc_bench\">Bench: D Jain<\/div>\n<\/p>\n<pre><\/pre>\n<p>JUDGMENT<\/p>\n<p>D.K. Jain, J. <\/p>\n<p> 1. Whether reporters of local papers may be allowed<br \/>\nto see the judgment?\n<\/p>\n<p> 2. To be referred to the Reporter or not ? Yes By this petition under Section 9 of the<br \/>\nArbitration and Conciliation Act, 1996 (for short the<br \/>\nAct), the petitioner, carrying on business of<br \/>\ncellular-mobile telephone services, seeks to restraint<br \/>\nthe Department of Telecommunications (for short the<br \/>\nDoT) from terminating the public switched telephone<br \/>\nnetwork (PSTN), connecting license for UP(East) circle,<br \/>\nallotted to them on 12 December 1995, pending<br \/>\narbitration on the disputes\/difference, which are<br \/>\nstated to have arisen between them. During the course<br \/>\nof hearing learned counsel for the petitioner had<br \/>\nstated that the petitioner was not pressing for the<br \/>\nsecond relief with regard to UP(West) circle, prayed<br \/>\nfor in the petition.\n<\/p>\n<p> 2. The material facts, leading to the filing of<br \/>\nthis petition, are:\n<\/p>\n<p>  The DoT issued tender dated 29 December 1994<br \/>\nfor cellular mobile telephone services in different<br \/>\nregions in India, divided into telecom circles. The<br \/>\nbids submitted by the petitioner for the UP(West),<br \/>\nUP(East), Bihar and Orissa circles were accepted.<br \/>\nlicense agreements in respect of UP(West), UP(East) and<br \/>\nOrissa circles were signed on 12 December 1995 and the<br \/>\nsame was the effective date of the licenses. However,<br \/>\nin the case of Bihar, the agreement was signed on 22<br \/>\nOctober 1996 but the effective date in this case was<br \/>\nalso 12 December 1995, which was subsequently changed<br \/>\nto 23 August 1996. The period for payment of license<br \/>\nfee and time available for delivery of stipulated<br \/>\ncoverage was to start from the effective date. The<br \/>\npetitioner submitted the required financial bank<br \/>\nguarantees to the DoT in respect of each of the<br \/>\ncircles.\n<\/p>\n<p> 3. According to the petitioner the targeted<br \/>\ncoverage could not be achieved within the expected<br \/>\nperiod of 12 months from the effective date and in fact<br \/>\nthe implementation of the project itself was<br \/>\nconsiderably delayed on account of procedural delays at<br \/>\nvarious stages, including delays at the government<br \/>\nlevel in according sanctions, resulting in default by<br \/>\nthe petitioner in making payment of the license fees<br \/>\nfor all the four circles. The petitioner claims to<br \/>\nhave made various representations, highlighting its<br \/>\nproblems and reasons for defaults in payment of license<br \/>\nfee. However, on account of the said defaults,<br \/>\npetitioner&#8217;s licenses for UP(West), Bihar and Orissa<br \/>\nwere terminated from 22 May 1999, which action of the<br \/>\nDoT was challenged by the petitioner in this Court by<br \/>\nfiling a petition under Section 9 of the Act (OMP<br \/>\n157\/99).\n<\/p>\n<p> 4. Since almost all the licensees had defaulted<br \/>\nin making payment of the license fees for one reason or<br \/>\nthe other, the Government of India came out with a new<br \/>\nNational Telecom Policy, 1999, effective from 1 April<br \/>\n1999. Under the new scheme the cellular operators were<br \/>\nrequired to pay one time entry fee and then a license<br \/>\nfee as a percentage share of gross revenue under the<br \/>\nlicense. The entry fee chargeable was to be the<br \/>\nlicense fee dues payable for existing licensees up to 31<br \/>\nJuly 1999 calculated up to this date duly adjusted<br \/>\nconsequent upon notional extension of effective date.<br \/>\nPursuant to the said new policy, the Government of<br \/>\nIndia, vide their letter dated 22 July 1999, offered<br \/>\nmigration package to all the existing licensees under<br \/>\nwhich a licensee could opt for migration from National<br \/>\nTelecom Policy of 1994 to the new National Telecom<br \/>\nPolicy of 1999 by fulfillling the terms and conditions<br \/>\ncontained in the migration package.\n<\/p>\n<p> 5. The petitioner responded to the said offer<br \/>\nvide its letter dated 26 July 1999, by lodging protest<br \/>\nagainst the DoT&#8217;s partisan action in respect of the<br \/>\neffective date. They expressed their inability to make<br \/>\ncommitment within the specified item and requested for<br \/>\noffer being kept open till clarification of the points<br \/>\nraised int heir letter.\n<\/p>\n<p> 6. However, presumably, Realizing that it may<br \/>\nbe left alone in the old package, vide its letter dated<br \/>\n28 July 1999, pertaining to UP(East), telecom circle,<br \/>\nthough ostensibly conveying its acceptance for<br \/>\nmigration to the new package, the petitioner, in<br \/>\ncontinuation of the aforenoted reply dated 26 July<br \/>\n1999, conveyed their conditional acceptance to which<br \/>\nthere was no response from the side of the respondent.\n<\/p>\n<p> 7. Perhaps, left with no choice, the petitioner<br \/>\nvide its letter dated 30 November 1999 conveyed its<br \/>\nunconditional acceptance to the migration package for<br \/>\nthe existing license for UP(East) circle, on the terms<br \/>\nand conditions conveyed to it by the DoT vide their<br \/>\naforementioned letter dated 22 July 1999. The DoT,<br \/>\nvide their letter dated 17 April 2000, permitted the<br \/>\npetitioner to migrate to the new package in respect of<br \/>\nall the four circles. Since some of the clauses in the<br \/>\nsaid letter have material bearing on the issue<br \/>\ninvolved, it would be necessary to reproduce the same:\n<\/p>\n<p>&#8220;This has reference to your letter dated 30.11.1999<br \/>\naddressed to the Secretary, Department of<br \/>\nTelecommunications conveying your belated<br \/>\nunconditional acceptance of the offer of migration<br \/>\npackage extended to you by Licensing Authority<br \/>\nvide letter No. 842-153\/99VAS(Vo.V) dated 22.7.1999<br \/>\nand other correspondence as well as representations<br \/>\nin person in respect of Cellular Service license<br \/>\nfor UP-East Telecom Circle.\n<\/p>\n<p> In consideration of your above mentioned<br \/>\nunconditional acceptance, and as a special case,<br \/>\nmigration to New Telecom Policy-1999 regime with<br \/>\neffect from 1.12.1999 is hereby offered to you<br \/>\nsubject to fulfillment of the following conditions<br \/>\nin entirety in the given time frames:\n<\/p>\n<p> (i) The cut off date for change over to NTP-99<br \/>\nregime will be 1.12.1999.\n<\/p>\n<p> (ii) The licensee will be required to pay one time<br \/>\nentry fee and license Fee as a percentage share of<br \/>\ngross revenue under the license. The Entry Fee<br \/>\nchargeable will be the license fee dues payable by<br \/>\nexisting licensee up to 30.11.1999, calculated up to<br \/>\nthis date duly adjusted consequent upon notional<br \/>\nextension of effective date as para (vi) below, as<br \/>\nper the Conditions of existing license.\n<\/p>\n<p> (iii) The license fee as a percentage of gross<br \/>\nrevenue under the license shall be payable w.e.f.<br \/>\n1.12.1999. xxxxx.\n<\/p>\n<p> (iv) You are requested to pay the following amounts<br \/>\nwithin 15 days of receipt of this letter.\n<\/p>\n<p> (a) An amount of 40% or more of the license fee<br \/>\ndues, payable for the period up to, and outstanding<br \/>\nas on 30.11.1999, calculated as per para (vi)<br \/>\nbelow.\n<\/p>\n<p> (b) Interest, on amount of license fee payable for<br \/>\nthe period up to 30.11.1999, as per the existing<br \/>\nlicense agreement, calculated up to 31.3.2000 in<br \/>\nfull and  <\/p>\n<p> (c) Liquidated damage charges of Rs. 100 lakhs (as<br \/>\ndemanded earlier vide letter<br \/>\nNo. 842-62(B)\/95VAS\/PT. dated 7.8.1998) along with<br \/>\ninterest up to the date of payment in full.\n<\/p>\n<p> The amounts computed in respect of (a) and (b) are<br \/>\nas follows:\n<\/p>\n<p>&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;-<br \/>\nService  license fee  40% of   Intt.\n<\/p>\n<p>Area  dues up to        license   calculated<br \/>\n   30.11.99 as  fee as in   up to 31.3.00<br \/>\n  per para (a)  col. (2)  as per para<br \/>\n  above      (b) above\n<\/p>\n<p>&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;-<br \/>\n1  2   3   4\n<\/p>\n<p>&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;<br \/>\nUP East  Rs.1,22, 88,72,694 Rs.49,15,49, 0785 Rs.60,60,78,94\n<\/p>\n<p>&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;-\n<\/p>\n<p> (v) The balance due of license fee for the period<br \/>\nup to 30.11.1999 will have to be paid within 45 days<br \/>\nfrom the date of receipt of this offer letter,<br \/>\nalong with interest calculated up to the actual date<br \/>\nof payment in full.\n<\/p>\n<p> (vi) xxxxx  <\/p>\n<p> (vii) xxxxx  <\/p>\n<p> (viii) Migration to the NTP-99 regime on the<br \/>\nconditions mentioned in this letter will be<br \/>\npermitted on the premise that the conditions are<br \/>\naccepted as a package in its entirety and<br \/>\nsimultaneously all legal proceedings in Courts,<br \/>\nTribunals, Authority or in Arbitration instituted<br \/>\nby the licensee including its subscribers and COAI<br \/>\n(Cellular parroters Association of India) against<br \/>\nDoT or UOI shall be withdrawn immediately and a<br \/>\ncopy of the application filed and Court&#8217;s order<br \/>\nthereon be provided to this office within 15 days<br \/>\nfrom date of receipt of letter. Further any<br \/>\ndispute with regard to the license agreement for<br \/>\nthe period up to the actual date of fulfillment of<br \/>\nall the terms and conditions of this package, shall<br \/>\nnot be raised at any future date. The acceptance<br \/>\nof this package will be deemed as a full and final<br \/>\nsettlement of all existing disputes whatsoever<br \/>\nirrespective of whether they are related with the<br \/>\npresent package or not.\n<\/p>\n<p> (ix) xxxxx    <\/p>\n<p> (x) xxxxx   <\/p>\n<p> (xi) If either of the cellular operators in a given<br \/>\nService Area does not accept the package, both the<br \/>\noperators will continue in the existing licensing<br \/>\narrangement until the validity of the present<br \/>\nlicenses.\n<\/p>\n<p> (xii) xxxxx  <\/p>\n<p> (xiii) xxxxx  <\/p>\n<p> (xiv) xxxxx  <\/p>\n<p> (xv) xxxxx <\/p>\n<p> 3. xxxxx  <\/p>\n<p> 4. An undertaking in the form of an affidavit in<br \/>\nthe enclosed proforma by an authorised signatory of<br \/>\nthe company of acceptance of the above terms and<br \/>\nconditions along with an authority in favor of<br \/>\nauthorised signatory to convey the acceptance,<br \/>\nshould reach the undersigned immediately and in any<br \/>\ncase not later than 24.4.2000 (7 days from date of<br \/>\nletter). In case no response is received within<br \/>\nthe stipulated period, it will be presumed that you<br \/>\nare not interested in migration to the new regime<br \/>\nand steps as envisaged in the said License<br \/>\nAgreement shall be taken under the terms and<br \/>\nconditions of the said license.\n<\/p>\n<p> 6. In case the conditions as above are not fully<br \/>\ncomplied within the stipulated time frame, action<br \/>\nshall be taken as per the advance notice of<br \/>\ntermination of license agreement issued earlier<br \/>\nvide letter dated 15.4.1999, without any further<br \/>\nnotice to you.&#8221;\n<\/p>\n<p> 8. The petitioner accepted the said offer vide its<br \/>\nletter dated 25 April 2000, by writing thus:\n<\/p>\n<p>  &#8220;We thank you for your letter<br \/>\nNo. 842-320\/2000VAS(Vol. II) dated April 17,<br \/>\n2000 which was received by us today.\n<\/p>\n<p> As desired by you, we enclosing an<br \/>\nundertaking in the form of an Affidavit<br \/>\nregarding the acceptance of terms and<br \/>\nconditions of the restoration of our<br \/>\nlicenses and Migration to new regime. The<br \/>\nnecessary authority from the company in my<br \/>\nfavor to furnish this Undertaking is also<br \/>\nenclosed.&#8221;\n<\/p>\n<p> 9. The requisite affidavit stating that the<br \/>\ncompany had unequivocally and unconditionally accepted<br \/>\nthe modified terms and conditions as a package, as<br \/>\ncontained in DoT&#8217;s letter dated 17 April 2000, was also<br \/>\nenclosed with the letter. Later, vide its letter dated<br \/>\n4 May 2000, while furnishing information with regard to<br \/>\nwithdrawal of pending legal proceedings, which included<br \/>\nOMP 157\/99, in terms of Clause 2(viii) of the agreement,<br \/>\nthe petitioner reassured the DoT that it would be<br \/>\nperforming all obligations required to be completed by<br \/>\nit as per the terms of aforesaid letter dated 17<br \/>\nApril 2000.\n<\/p>\n<p> 10. It appears that thereafter the petitioner sent<br \/>\nthree cheques in the sums of Rs. 124.82 lakhs, Rs. 115.02<br \/>\nlakhs and Rs. 40.17 lakhs towards provisional license<br \/>\nfees respectively for quarters April 2000-June 2000,<br \/>\nJanuary 2000-March, 2000 and for the month of December<br \/>\n1999 under three separate covering letters, all dated 31<br \/>\nJuly 2000. But the same were returned un-encashed by<br \/>\nthe DoT. The petitioner was informed vide DoT&#8217;s letter<br \/>\ndated 9 August 2000 that all the four packages stand<br \/>\nautomatically withdrawn and cancelled on account of<br \/>\npetitioner&#8217;s failure to comply with the conditions of<br \/>\nthe packages by the due date i.e. 24 July 2000, despite<br \/>\nits un-conditional and un-equivocal undertaking on<br \/>\naffidavit.\n<\/p>\n<p> 11. Again on 8 September 2000, the petitioner sent<br \/>\ntwo cheques in the total sum of Rs. 100 Crores as upfront<br \/>\npayment with a request to the DoT to condone the delay<br \/>\nin payment of balance amount. The said amount was<br \/>\naccepted and adjusted by the DoT as requested by the<br \/>\npetitioner vide their letter dated 26 September 2000,<br \/>\nbut without prejudice. It appears that thereafter some<br \/>\ncorrespondence ensued between both the parties and,<br \/>\nperhaps, for the first time, vide its letter dated 1<br \/>\nFebruary 2001, the petitioner raked up the issues with<br \/>\nregard to the uniform cut off date, license fee for the<br \/>\nterminated period on license etc. By their letter dated<br \/>\n23 February 2001, the DoT called upon the petition to<br \/>\nclear all its dues within thirty days of the issue of<br \/>\nthe letter failing which action for recovery was<br \/>\nthreatened. Changing its stand with regard to the<br \/>\nadjustment of Rs. 100 Crores paid on 8 September 2000,<br \/>\nvide its letter dated 3 September 2001, the petitioner<br \/>\nseparated the license for UP(East), the circle with<br \/>\nwhich we are concerned in the present petition, and<br \/>\ninformed the DoT that if the said entire amount is<br \/>\nadjusted against the dues of this circle, nothing would<br \/>\nbe due to be paid to them. Interstignly, by adopting<br \/>\n31 July 1999 as the cut off date on its own accord the<br \/>\npetitioner asked for adjustment of 115.64 Crores against<br \/>\nits revenue share from 1 August 1999 to 30 June 2001.<br \/>\nBy the impugned letter dated 19 September 2001, the DoT<br \/>\nfinally asked the petitioner to clear all its<br \/>\noutstanding udes. Expecting termination of license for<br \/>\nthe solitary live UP(East) circle, the petitioner filed<br \/>\nthe present petition.\n<\/p>\n<p> 12. While issuing notice, by order dated 24<br \/>\nSeptember 2001, the respondent DoT was restrained from<br \/>\nterminating the license agreement dated 12 December<br \/>\n1995, and PSTN connectivity in relation to UP(East)<br \/>\ncircle on petitioner&#8217;s depositing a sum of Rs. 3 Crores<br \/>\nwithin three weeks from that date.\n<\/p>\n<p> 13. In the affidavit filed in opposition, the<br \/>\npetition is opposed on the preliminary objection that<br \/>\nthe petitioner having accepted the migration package<br \/>\nun-conditionally and un-equivocally, it was estopped<br \/>\nfrom raising the disputes again by means of this<br \/>\npetition, which according to the specific condition of<br \/>\nthe migration package were to stand settled and no such<br \/>\ndispute, prior to the cut off date of migration could be<br \/>\nraised. On merits, while refuting petitioner&#8217;s<br \/>\nallegation on delay on the part of the Government of<br \/>\nIndia in granting various sanctions or that the<br \/>\npetitioner was being discriminated against, it is stated<br \/>\nthat more then 400 Crores is due from the petitioner<br \/>\ntowards license fee, liquidated damages and interest<br \/>\ncalculated against all four licenses. Insofar as<br \/>\nlicense for UP(East) is concerned, after adjustment of<br \/>\nthe amounts paid, a sum of Rs. 273.4288656 plus revenue<br \/>\nsharing from 1 December 1999 onwards is stated to be due<br \/>\nfrom the petitioner under the aforementioned heads under<br \/>\nthe new migration package. In the additional affidavit<br \/>\nfiled on behalf of the DoT, it is also pointed out that<br \/>\nthe other cellular operators in UP(East) namely,<br \/>\nM\/s. Aricell Digilink has accepted the migration package<br \/>\nwith the cut off date as 1 August 1999.\n<\/p>\n<p> 14. I have heard Mr. Kapil Sibal, learned senior<br \/>\ncounsel for the petitioner and Mr. Harish Salve, learned<br \/>\nSolicitor General of India on behalf of the DoT at<br \/>\nconsiderable length.\n<\/p>\n<p> 15. It is submitted by Mr. Kapil Sibal, leaned<br \/>\nsenior counsel, that: (i) on account of delays on the<br \/>\npart of various Government agencies in FIPB approval,<br \/>\nfrequency authorization as also frequency allogcation,<br \/>\nthe petitioner was justified in asking for extension in<br \/>\nthe effective date of license, particularly when similar<br \/>\nchanges were permitted to various other licensees; (ii)<br \/>\nsince the petitioner had opted for payment of license<br \/>\nfee under the 1994 package in four years, although it<br \/>\nhad the option to pay the same in 10 years, it would be<br \/>\nharsh, unreasonable and discriminatory to the petitioner<br \/>\nif the license fee payable under the new package is not<br \/>\nnormalised vis-a-vis the operators who had opted for 10<br \/>\nyears period, inasmuch as in the case of the petitioner<br \/>\nit would pay the entire license fee (payable in ten<br \/>\nyears) as entry fee for migration to the new policy<br \/>\nwhereas other operators who had opted to pay the license<br \/>\nfee over a period of 10 years would pay barely 30% of<br \/>\nthe license fee as entry fee; (iii) a large sum of<br \/>\nmoney is due and payable by the DoT to the petitioner as<br \/>\non the termination of three licenses for UP(West), Bihar<br \/>\nand Orissa on 22 May 1999, under Clause 15 of the<br \/>\nlicense agreement, the respondent is obliged to take<br \/>\nover the goods, services and assets of the petitioner<br \/>\nand pay compensation in terms of Clause 15.3 thereof, to<br \/>\nbe calculated on the basis of &#8220;current replacement value<br \/>\nof the asset, their future earning capacity and such<br \/>\nlike other relevant factors&#8221;, which works out to<br \/>\nRs. 984.02 Crores and (iv) since the petitioner has<br \/>\nchallenged the terms of the package itself as arbitrary<br \/>\nand un-constitutional, it cannot be non-suited on the<br \/>\nground that having accepted the migration package<br \/>\nunconditionally it is estopped from raising any dispute<br \/>\nrelating to the period prior to the new package. In<br \/>\nsupport of the proposition that the fundamental rights<br \/>\ncannot be waived, reliance is placed on the decisions of<br \/>\nthe Supreme Court in the cases of  Daryao and Ors. v.<br \/>\nThe State of UP and Ors.  and<br \/>\n Basheshar Nath v. CIT 1959 Supp. (1) 528. It is<br \/>\nasserted that though changes in effective dates have<br \/>\nbeen permitted by the DoT to some other operators, like<br \/>\nHexicon, Modicon, Sreenivas Cellcon, and the disputes<br \/>\npertaining to the period prior to the migration package<br \/>\nare still being entertained by the DoT (Bharati Mobile<br \/>\nLimited) but the same relief is being denied to the<br \/>\npetitioner, which is clearly discriminatory and<br \/>\narbitrary. It is vehemently urged by Mr. Sibal that<br \/>\nsince the parties are being referred to arbitration on<br \/>\nthe disputes raised by the petitioner, a prima facie<br \/>\ncase is made out in favor of the petitioner for grant<br \/>\nof interim relief and if the same is not granted at this<br \/>\nstage and petitioner&#8217;s operations in the only active<br \/>\ncircle UP (East) would come to a grinding halt and it<br \/>\nwill suffer irreparable injury, particularly when the<br \/>\nDoT has not so far taken any final decision with regard<br \/>\nto the take-over and payment of compensation in respect<br \/>\nof licenses terminated as far back as on 22 May 1999.\n<\/p>\n<p>16. The learned Solicitor General, on the other<br \/>\nhand, while reiterating the aforenoted stand of the<br \/>\nrespondent that having accepted the migration package<br \/>\nunconditionally, which the petitioner was not otherwise<br \/>\nbound to opt for and in fact it was offered to them as a<br \/>\nspecial case, it is not open to the petitioner to now<br \/>\nrake up certain points. It is pointed out that except<br \/>\nfor the initial signing amount none of the Installments<br \/>\nof license fee under the new package has been paid by<br \/>\nthe petitioner in time. It is also urged that if the<br \/>\npetitioner wants to operate under the new package, he<br \/>\ncannot be permitted to challenge some of the terms and<br \/>\nconditions of the same package. The petitioner is to<br \/>\neither accept the package as it is or to leave it.<br \/>\nInsofar as the claim of the petitioner with regard to<br \/>\nthe normalisation of the license fee is concerned, it is<br \/>\ncontended that there is no element of unequal treatment<br \/>\nto the petitioner because the other operator, who had<br \/>\ninitially opted for payment in ten years, was also asked<br \/>\nto pay on the basis of four years period due to<br \/>\npetitioner&#8217;s bid being ranked H. 1 in terms of tender<br \/>\nevaluation. It is asserted that at the time of<br \/>\nmigration the other operator was offered similar payment<br \/>\nschedule as was offered to the petitioner, which the<br \/>\nother party has accepted and made payment in terms<br \/>\nthereof. Regarding petitioner&#8217;s claim for compensation<br \/>\nunder Clause 15.3 of the license agreement, it is<br \/>\nsubmitted that the DoT is under no obligation to take<br \/>\nover the equipment or the goods of the petitioner. It<br \/>\nis urged that the stipulation in Clause 15 for take over<br \/>\nwas primarily meant for the benefit of the consumers, to<br \/>\nensure that services to them were not interrupted.\n<\/p>\n<p> 17. Having given my thoughtful consideration to the<br \/>\nrival submissions, I am of he view that strictly<br \/>\nspeaking, having accepted the new package in terms of<br \/>\nits letter dated 25 April 2000 unequivocally and<br \/>\nunconditionally, the petitioner was bound to comply with<br \/>\nall the terms and conditions of the package and make<br \/>\nfull payment of license fee in terms thereof. When the<br \/>\nparties enter into a contract, the terms of the contract<br \/>\nhave to be respected by all concerned. Therefore, at<br \/>\nthe first blush, it is difficult to say that the<br \/>\npetitioner has technically and in the traditional sense<br \/>\nmade out a straight prima facie case for grant of<br \/>\ninterim relief at this stage. But the prime question<br \/>\nthat arises for consideration is that when the parties<br \/>\nhave already been referred to arbitration for resolution<br \/>\nof the disputes pertaining to the same contract and the<br \/>\nwhole matter is at large before the arbitrator, whether<br \/>\nit would be proper to give some breathing time to the<br \/>\npetitioner to discharge its liabilities towards the DoT<br \/>\nunder the agreement by operating its services or decline<br \/>\ninterim relief, resulting in stoppage of its operations<br \/>\nand leaving the DoT to take recourse to proceedings for<br \/>\nrecovery of its dues after the award is given, which<br \/>\nincidentally is likely to take time.\n<\/p>\n<p> 18. The choice, though difficult, can be two fold;<br \/>\none, to reject the relief sought for and leave the<br \/>\nparties to the outcome in arbitration; the other, to<br \/>\ngrant graded relief to the petitioner by putting it on<br \/>\nterms to show its bona fides, by starting the process of<br \/>\npayment of dues right now.\n<\/p>\n<p> 19. Without going into the merits of the respective<br \/>\nstands of both the parties before me, lest it may cause<br \/>\nprejudice to either of the sides, and balancing the<br \/>\nequities between them and bearing in mind them the fact that<br \/>\nadmittedly on the one hand the petitioner has made huge<br \/>\ninvestments for providing the cellular services and<br \/>\ntermination of the license at this stage would cause<br \/>\nirreparable injury to it and at the same item a<br \/>\nsubstantial amount towards the license fee is due from<br \/>\nit to the DoT, I am of the view that, in the<br \/>\ncircumstances, pending arbitration, following interim<br \/>\narrangement would be just and fair to both the parties:\n<\/p>\n<p>(i) The petitioner shall pay to the DoT on or<br \/>\nbefore 15 July 2002 the full amount of<br \/>\nlicense fee payable up to 31 May 2002 in<br \/>\nterms of DoT&#8217;s letter dated 17 April<br \/>\n2000, excluding, however, the interest<br \/>\nand the amount payable towards liquidated<br \/>\ndamages, after adjusting a sum of<br \/>\nRs. 81.87 Crores, (Rs. 78.7 + 3 Crores in<br \/>\nterms of order dated 24 September 2001),<br \/>\nadmittedly paid by the petitioner;\n<\/p>\n<p>(ii) From 1 June 2002 onwards and till further<br \/>\norders by the Arbitrator, the petitioner<br \/>\nshall pay by the due date a license fee @<br \/>\n20% as against current rate of 10% of the<br \/>\ngross revenue, payable in terms of Clause\n<\/p>\n<p>(iii) of the said letter. The excess<br \/>\namount of 10% shall be adjusted by the<br \/>\nDoT against the pending demand towards<br \/>\ninterest and liquidate damage;\n<\/p>\n<p> (iii) The interim stay order dated 24 September<br \/>\n2001 will continue till the award is made<br \/>\nby the arbitrator, however, subject to<br \/>\npayments in terms of (i) and (ii)<br \/>\nhereinabove by the specified date\/within<br \/>\ntime; and  <\/p>\n<p> (iv) In case of default in any of the<br \/>\npayments, the interim order shall stand<br \/>\nvacated and the respondent-DoT will be<br \/>\nfree to enforce its rights under the<br \/>\ncontract.\n<\/p>\n<p> The petition stands disposed of in the<br \/>\nabove terms, with no order as to costs.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Delhi High Court Koshika Telecom Limited vs Union Of India (Uoi) on 31 May, 2002 Equivalent citations: 98 (2002) DLT 665 Author: D Jain Bench: D Jain JUDGMENT D.K. Jain, J. 1. Whether reporters of local papers may be allowed to see the judgment? 2. To be referred to the Reporter or not ? Yes [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[14,8],"tags":[],"class_list":["post-98050","post","type-post","status-publish","format-standard","hentry","category-delhi-high-court","category-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Koshika Telecom Limited vs Union Of India (Uoi) on 31 May, 2002 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/koshika-telecom-limited-vs-union-of-india-uoi-on-31-may-2002\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Koshika Telecom Limited vs Union Of India (Uoi) on 31 May, 2002 - Free Judgements of Supreme Court &amp; 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