Court Stay On Encashment Of Essar Comm Bank Guarantee

The Delhi High Court yesterday asked Essar Commvision to file a civil suit within a week and directed the department of telecommunications not to encash the companys bank guarantee of Rs 25 crore for Punjab telecom circle until then.

The court also set the hearing of a stay plea by Usha groups Techno Telecom against DoTs move to encash its Rs 5 crore guarantee for Bihar circle for February 7. Essar Commvision had filed a writ petition against the DoT move on Thursday. The department had sought to encash the companys guarantee on Tuesday.

After government counsel Meera Bhatia undertook before the court that DoT would not invoke the bank guarantee for one week, Justice C M Nayar dismissed the Essar writ petition but gave it liberty to raise the matter in a civil suit before an appropriate court.

 

There are similar cases pending before the court in which DoT has been restrained from invoking the bank guarantees. Other companies which have challenged the DoT move are RPG-led Basic Teleservices and Himachal Futuristic Communications Ltd (HFCL). The court has reserved a judgement on the HFCL case.