Wednesday 3 October 2012

TDSAT slams MTNL for deducting disputed dues from Tata Communications

The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) has disapproved state-run Mahanagar Telephone Nigam Limited (MTNL) action of deducting a disputed sum of money from Tata Communications even when the matter was being heard by TDSAT.
The TDSAT said that, "it was expected of a public sector undertaking which is a 'State' within the meaning of Article 12 of the Constitution of India to seek leave of this Tribunal before any such deduction was made".

TDSAT did not agree with MTNL argument that the recovery of public money should not be stayed. TDSAT said"...there should not be a stay of recovery of public money by way of adjustments of the bills, in our opinion, cannot prima facie be accepted. If the MTNL was so much concerned about the public money it ought to have taken steps to recover the same at an early date".
The Tata group company had argued before TDSAT that Rs 80 lakh deducted by MTNL was barred by limitation. The deduction was made by MTNL while adjusting old demands between the period of May, 2005 to August 2008.
There was an agreement between MTNL and Tata Communications (formerly VSNL) over the issue of providing ILD services between for Mumbai and Delhi circles. There was some dispute between the two companies over the payment of ILD services and the Tata group firm approached TDSAT seeking recovery of Rs 88 lakh from MTNL.

Source: http://cablequest.org/news/legal-news/item/673-tdsat-slams-mtnl-for-deducting-disputed-dues-from-tata-communications.html
Source: http://cablequest.org/news/legal-news/item/673-tdsat-slams-mtnl-for-deducting-disputed-dues-from-tata-communications.html

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