Supreme Court restraints DoT from encashing bank guarantee in default of payment of AGR dues

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The Supreme Court has today asked Bharti Airtel to approach the Telecom Dispute settlements and Allellate Tribunal (TDSAT) against the payment of Adjusted Gross Revenue (AGR) dues of Videocon Telecommunications Ltd.

A three Judges special bench of Justice L Nageshwar Rao, Justice S Abdul Nazeer and Justice MR Shah while allowing Airtel to withdraw the plea asked DoT, not to invoke bank guarantee for 3 weeks in default of payment of AGR dues.

The application has been filed Bharti Airtel challenging the communication received by the Department of Telecommunication for encashment of bank guarantee in relation to default in payment of AGR dues, however, Airtel alleges that the dues are of Videocon Telecommunications Ltd.

Senior Advocate Shyam Divan appearing for Airtel submitted that we received a communication that if the dues are not paid bank guarantees. 

"This is an earlier liability, the seller's dues should not be upon the buyer, I'm the buyer hence it should not be upon me," Divan added.

Whereas, when the bench clarified that we'll allow Airtel to approach the TDSAT, Solicitor General Tushar Mehta contended that my argument is that TDSAT has no Jurisdiction in this matter.

However, the bench while allowing the liberty to Airtel to withdraw the application and approach the appropriate forum, directed DoT not to invoke the bank guarantee for 3 weeks from today in violation of payment of AGR dues.

Case Title- Union of India Vs. Association of Unified Telecom Service Providers of India and Ors.