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How the telecom mess got messier

Is there a way out? First and foremost, recognise that we are dealing with issues of solvency

Rahul Khullar 

Rahul Khullar

Telecom was already neck-deep in a crisis. The Supreme Court’s (SC) judgment on gross revenue (GR) has brought the sector to its knees. The SC’s judgment is based on: (i) the licence agreement (LA) is a contract; (ii) the definition of GR, a contractual term, is binding; (iii) the parties entered into the contract willingly; (iv) res judicata bars continued litigation of settled issues.

The Court ruled that the dispute could not be termed “bona fide”. The telcos merely raised “frivolous” objections. The payment of “interest, penalty and ...

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First Published: Mon, November 25 2019. 23:49 IST
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