TDSAT stays BSNL from encashing bank guarantees of Loop

Telecom tribunal TDSAT has stayed till further orders BSNL from encashing the bank guarantee given by Loop Telecom in lieu of interconnection usage charges in Madhya Pradesh and J&K circles.

A TDSAT bench headed by Justice S B Sinha stayed the encashment of bank guarantee of Rs 50 lakh till further orders and asked to maintain status quo.

"Till further orders, status quo shall be maintained with regard to Madhya Pradesh and Jammu & Kashmir for encashment of bank guarantee," said the TDSAT bench.

The Telecom Disputes Settlement and Appellate Tribunal also issued notice to BSNL directing it to file a reply within three weeks.

It also gave two weeks time to Loop Telecom to file rejoinder within two weeks and posted the matter on July 17 for the next hearing.

The tribunal also said if Loop Telecom loses its case, then it would have to compensate.

"It is also made clear that in the event this petition is dismissed, the petitioner (Loop) would be bound to pay the amount demanded by the respondent (BSNL) herein either by paying the amount to the respondent in cash or by adjusting the same with other bank guarantees," the tribunal said.

The tribunal's direction came over a petition filed by Loop Telecom challenging the PSU's decision to invoke the bank guarantee on account of dues on interconnection usage charges of Rs three lakh in Madhya Pradesh and J&K circles.

The operator has disputed the interconnection charges to BSNL as its licence has been cancelled.

Loop was issued 2G spectrum with licences for 21 circles in 2008 during the tenure of the then Telecom Minister A Raja.

The Supreme Court on February 2 held that the process of allocating all the 122 second generation (2G) licences, including those to Loop, was 'arbitrary and unconstitutional' and cancelled all of them.

Last month, Loop had filed another petition before TDSAT seeking Rs 1,000 crore compensation from the government for issuing faulty licence and spectrum.