HC flays Idea for suppressing info in Spice merger case

Aditya Birla Group firm Idea Cellular today faced the ire of the Delhi High Court for suppressing certain documents while getting its approval for merger with Spice Communications.

Idea, meanwhile, cried foul against the Department of Telecom (DoT) for furnishing to the court only parts of its correspondence with the company and getting a stay on the merger "behind its back", without getting any notice.

However, Justice Manmohan expressed displeasure with Idea for not being fair to the court and failing to place some relevant communication relating to their merger.

"You don't even produce basic documents, licence agreements and correspondence. Then you are rely on some judgements. Your clients (Idea and Spice) are not being fair to the court. How could the court make a informed decision?" Manmohan told the counsel for the telecom companies.

"Do you think this correspondence is useless? Your scheme of merger says about transfer of licence. This document is not disclosed to court. Real grab of the matter is not disclosed?" he added.

DoT has alleged that the two companies had suppressed information while securing the court approval for the merger.

Later, the court stayed the merger on DoT's plea.

Meanwhile, Idea and Spice refuted DoT allegations, blaming the department for not furnishing all correspondence between them before securing the stay order.

"It is unfair that they (DoT) do not give complete correspondence. DoT approached the Delhi High Court on March 30, three years after the merger, and they do not serve me the application and get stay behind my back. It is against natural justice," said Senior advocate Abhishek M Singhvi, appearing for the telcos.

The company maintained that it was its "bonafide belief" that for the merger of companies it had to seek the court's approval, and for merger of licences DoT's nod was required.

DoT has also issued a cancellation order to Idea for the overlapping of licences in the same circle in view of the merger announced in 2008.

The companies alleged high handedness on part of DoT for selectively withholding their 3G spectrum, issuing show cause and demand notices, and then obtaining an ex-parte order on the three year old merger.

 Idea is facing charges of violation of terms and conditions and has claimed that it never wanted to retain the unused spectrum and had offered to surrender the overlapping licence.